January 08, 2015

CAB to scrap airline fuel surcharges

The Civil Aeronautics Board (CAB) has reportedly approved yesterday a resolution that will scrap the fuel surcharges that domestic and international airlines operating in the Philippines incorporate into their ticket prices.

The order will be served to airlines today and will take effect immediately. This is seen to reduce ticket prices by a few hundred pesos for domestic flights and several hundreds of US dollars for long-haul international flight. The order came amid falling oil prices.

The government usually allows airlines to impose a fuel surcharge in order to recover part of fuel costs when the latter become volatile.

Our take: The reduced airline ticket prices should help boost tourism and should be JG Summit Holdings Inc (JGS). - WealthSec