Domestic and overseas carriers in the Philippines have been directed to trim the fuel surcharge they tack onto passenger tickets, with the reduction set to take hold for travel between June 16 and 30.
The Civil Aeronautics Board (CAB) said in an advisory that the allowable surcharge will drop to Level 12 for the second half of the month, a notch below the Level 13 cap in force during the first half. It marks the cheapest setting since the charge peaked at Level 19 in late April.
For passengers, the new ceiling translates to between P389 and P1,137 on domestic routes and between P1,284.40 and P9,550.13 on international flights, with the exact amount tied to how far the plane travels. The outgoing Level 13 had permitted fees ranging from P423 to P1,237 on local hops and from P1,396.74 to P10,385.42 abroad.
Carriers intending to collect the charge must lodge an application with the board ahead of June 16. For those billing in foreign currencies, the CAB pegged the conversion at P61.62 against the US dollar.
The relief for travelers, however, arrives as airlines stare down a harder financial year. The International Air Transport Association (IATA) anticipates that Asian operators, among them Cebu Pacific and Philippine Airlines, will watch their earnings erode through 2026.
By IATA’s reckoning, combined net profit across Asian airlines is poised to fall by roughly a third, landing at $6.6 billion versus the $9.6 billion booked in 2025. Per-passenger earnings are projected to slide 36 percent to $3.4 from $5.3, while margins compress to 2.1 percent as fuel bills climb — a trajectory that would mark the region’s bleakest stretch since 2022.
Currency weakness is compounding the strain. The peso slumped to a record close of P61.75 to the dollar on May 19, part of a broader retreat among Asian currencies that has inflated dollar-denominated costs for the industry.
That pressure is already showing on local balance sheets. In the opening quarter, Philippine Airlines reported net income of P4.28 billion, down one percent, while Cebu Pacific fell into the red with a P400-million net loss.
