Good news for travelers: Airfare costs set to ease this June

National

CHEAPER plane tickets await Filipino travelers after regulators approved a lower fuel surcharge level effective mid-June.

The Civil Aeronautics Board (CAB) has ordered airlines to bring the passenger fuel surcharge down to Level 12 from Level 13 for flights scheduled from June 16 to 30.

The adjustment, per a report by Philstar, reflects easing jet fuel prices and marks the lowest fuel surcharge level imposed since airlines hit a record-high Level 19 during the second half of April.

Under Level 12, airlines may collect fuel surcharges ranging from P389 to P1,137 for domestic flights and from P1,284.40 to P9,550.13 for international services, depending on distance traveled.

In comparison, the current Level 13 allows carriers to charge between P423 and P1,237 for domestic routes and between P1,396.74 and P10,385.42 for international flights.

CAB said in a Philstar report that airlines intending to collect fuel surcharges during the period must first secure approval from the agency before June 16. The regulator also set the applicable exchange rate for carriers transacting in foreign currencies at P61.62 to $1.

While the reduction is expected to ease travel costs for passengers, airlines continue to grapple with mounting expenses tied to fuel and foreign exchange movements.

The International Air Transport Association (IATA) expects Asian carriers, including Cebu Pacific and Philippine Airlines (PAL), to face tighter profit margins this year as operating costs remain elevated.

Based on its latest projections, IATA said net profits among Asian airlines are expected to fall to $6.6 billion this year from $9.6 billion in 2025.

Margins are also forecast to narrow to 2.1 percent as airlines spend more on jet fuel. Profit per passenger is projected to decline by 36 percent to $3.40 from $5.30, which IATA said would make 2026 the region’s most difficult year since 2022.

The airline industry group also cited the weakening of Asian currencies against the US dollar as another challenge for carriers.

In the Philippines, the peso has recently traded near historic lows, recording its weakest closing rate of P61.75 to $1 on May 19.

The impact of higher fuel costs has already been reflected in the first-quarter results of local airlines.

PAL posted a one-percent decline in net income to P4.28 billion, while Cebu Pacific swung to a net loss of P400 million.(MyTVCebu)