Manila: A boost in travel demand is expected in November and the December Christmas season as authorities lowered the fuel surcharge (FSC) rate from its current level 9 to Level 8, starting November.
Local carriers applauded the Civil Aeronautics Board's (CAB) directive released on Wednesday, October 19, anticipating that it would increase demand for travel over the holiday season by December.
In the advisory, signed by CAB executive director Carmelo Arcilla, the aviation industry regulator said passenger and cargo fuel surcharges for domestic and international flights from November 1 to 30 will correspond to Level 8 of the CAB’s fuel surcharge matrix — down from September and October when the fuel surcharge was pegged at Level 9.
The tickets that will be purchased in November are subject to the revised fuel surcharges, she added.
Philippine Airlines (PAL) Spokesperson Cielo Villaluna said: "We are happy to cooperate. We will adjust our fuel surcharges in accordance with the most recent CAB directive.”
The good news, according to Villaluna, "comes at a time when we are expanding flight capacity across our local and international route networks.”
According to Steve Dailisan, spokesperson and head of communications and public affairs for AirAsia Philippines, the FSC downgrade has a significant positive impact on travelers over the holiday season.
Boost in travel demand
This reduces by nearly 12% the FSC cost to Cebu from Manila — from Php571 to Php503. For Manila-Davao flights, the FSC will be reduced by 9.46% from Php782 in October to Php708, starting from November.
Dailisan told local media that they anticipate the lower rate would significantly increase demand.
In the fourth quarter, AirAsia is looking to meet a high average of 90 to 95 percent in domestic load factor, he added.
The budget airline is putting regular promotions into place toward the end of the year in order to make travel more cheap as demand increases.
For clients flying from November 1, 2022, to June 30, 2023, AirAsia Philippines is now offering a 20% OFF promotion, which may be booked through the airasia Super App until October 23.
Dailisan said: "We are happy to make it possible for more friends and families to share in the most festive season.”
For its part, local carrier Cebu Pacific is now offering base fares for Manila-Davao and other local destinations for as low as Php88 one-way, and select international destinations from Php999, one-way.