MANILA - Cebu Pacific confirmed on Monday that it has sought the Civil Aeronautics Board's (CAB) approval to collect fuel surcharges.
Lance Gokongwei, the airline's president and CEO, said Cebu Pacific had no choice but to apply for a fuel surcharge again amid the higher cost of oil in the world market and the weakness of the peso.
"Fuel price and currency changes have been quite significant. In aggregate, we spend P700 million more per month to fly the same flights," Gokongwei said.
Cebu Pacific has applied for a fuel surcharge of P70 to P250 for domestic flights.
"This recovers half of the increase in cost we are facing. We are really trying to minimize the increase to the lowest possible," he said.
Higher fuel costs and a weaker peso already cut into Cebu Pacific profits last year, pulling net income down 19 percent despite a 10 percent increase in revenues.
On top of this volatility, the airline also had to deal with the closure of Boracay.
Gokongwei said the absence of flights to the popular island resort will cause a P500 million to P1 billion reduction in revenues for Cebu Pacific this year.