AirAsia to hike fuel surcharge in July due to rising jet fuel prices

ABS-CBN News

Posted at Jun 27 2022 11:34 AM | Updated as of Jun 27 2022 11:42 AM

An AirAsia plane. AirAsia Newsroom
An AirAsia plane. AirAsia Newsroom

MANILA — AirAsia Philippines said rising jet fuel costs is likely to affect the fuel surcharges it impose on tickets prices.

Staring July 1, AirAsia will impose between P350 to P1,050 fuel surcharge in line with the guidelines of the Civil Aeronautics Board, AirAsia Philippines president Ricky Isla told ANC. 

July rates could reach Level 11 from the current Level 7 in the fuel surcharge matrix, the CAB earlier said. 

Under Level 11, airlines are allowed to collect fuel surcharge of P355 to P1,038 per passenger for a one-way domestic flight and from P1,172 to P8,714.84 for international flights coming from the Philippines.

"[It's a] very tough situation, but you know all airlines right now are following the Civil Aeronautics Board with regards to fuel surcharge increase," Isla said.

"We really see an uphill increase in our fuel with the 3 recent implementation of all the price increase, fuel surcharge. We expect that this will continue to [have an] impact on our fuel surcharge implementation," he added.

Isla shared that fuel covers about 30 to 35 percent of their costs.

He said the airline is coming up with promotions to entice passengers to fly.

"We will be able to balance a little bit with our promotions right now for both domestic and international flights," he said. 

Despite the rising jet fuel prices, Isla said they aim hit 65 percent of their international capacity in the fourth quarter.

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