The operators of Cebu Air Inc. (Cebu Pacific) and South East Asian Airline (Seair) Inc. (Tiger Airways Philippines) are seeking approval from the Civil Aeronautics Board (CAB) for their proposed fare increase for domestic flights.
In a petition to the CAB, Tiger Airways and Cebu Pacific requested provisional authority to raise their fuel surcharge.
Tiger Airways is proposing to increase its fuel surcharge by P500 for the Manila-Cagayan de Oro flight and a similar hike for the flight back. Cebu Pacific is seeking a hike in fuel surcharge by P300 for Cebu to Tandag City in Surigao del Sur and vice versa.
A fuel surcharge is a temporary relief granted to domestic airlines to help them recover losses they incur from higher jet fuel prices.
Fuel accounts for about 50 percent to 60 percent of an airline’s operating cost per passenger, with labor as the second highest expense.