Airfares to hit lowest levels in three months

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June 29, 2026 | 12:00am

MANILA, Philippines — Travelers planning to book a flight soon may find the cheapest airfares since April following the reduction of the fuel surcharge to a three-month low.

In an advisory, the Civil Aeronautics Board (CAB) ordered airlines to cut the fuel surcharge by three notches to Level 9 for July 1 to 15, from the current Level 12.

Once Level 9 is rolled out, it will be the lowest fuel surcharge rate that airlines would pass on to passengers since propelling to an all-time high of Level 19 in the second half of April.

At Level 9, airlines may levy a fuel surcharge of P287 to P839 for domestic flights and P947.39 to P7,044.27 for international trips, depending on the distance. When compared, Level 12 sets a fuel surcharge of P389 to P1,137 for local flights and P1,284.4 to P9,550.13 for foreign trips.

CAB told airlines planning to collect the fuel surcharge to file an application before the office by July 1. Likewise, the regulator set the exchange rate at P60.99 to $1 for carriers transacting in foreign currencies.

Further, the lowering of fuel surcharge could help airlines drive passenger growth during the lean season, as demand tends to wind down between July and September due to the rainy weather.

Cebu Pacific president and chief commercial officer Alexander Lao said the airline is lessening flight volume and revenue expectations for the third quarter.

“As we enter the seasonally softer third quarter, we are taking a disciplined approach to capacity and revenue management to match demand, support healthy load factors and maintain affordable fares while managing elevated operating costs, particularly fuel,” Lao said.

Globally, jet fuel prices were starting to come down after parties to the Middle East conflict looked like they found a long-term resolution. However, the region is under fire again as the US fired missile strikes on Iranian bases around the Strait of Hormuz.

This triggered Iran to launch retaliatory attacks on US allies in the Middle East, such as Bahrain and Kuwait. Israel, for its part, also mounted drone offensives on Lebanon even as it committed to withdraw troops from the country.

Based on the monitoring of the International Air Transport Association, jet fuel rates have declined to $119.17 per barrel as of June 19, its lowest level in three months.

There was a point in April when jet fuel prices had broken the $200-per-barrel level, compelling airlines to cancel scheduled flights and rethink their operational networks.