Cebu Pacific seeks fuel surcharge hike
Cebu Pacific is seeking an increase in fuel surcharges, which will result in higher plane fares, due to the continued volatility in the prices of oil products.
In a petition filed with the Civil Aeronautics Board (CAB)—which operates Cebu Pacific—has asked for authority to increase the fuel surcharges it is imposing on most of its international flights.
If approved, the biggest increase will be for flights between Cebu and Hong Kong, to $30 from $15. Surcharges, which are added to basic plane fares, will also double for flights between Manila and Kuala Lumpur to $20.
The CAB said it would hold a hearing on the adjustment of plane fares on January 5 next year.
Surcharges between Manila and Kota Kinabalu, Manila and Hong Kong, and Manila and Osaka will remain at current levels.
The surcharges for Clark-Hong Kong flights will even be lowered to $15 from $25.
Fuel prices have been rising since early last year. According to the International Air Transport Association, the price of jet fuel was $126 per barrel at the start of the December, up by 22.8 percent from year-ago level.
In its latest financial statement, Cebu Pacific said its expenses rose by 31.7 percent year on year for the nine-month ending September due to fuel price increases.
The rise in expenses was partially offset by the strengthening of the peso against the dollar as referenced by the appreciation of the peso to an average of 43.25 per dollar for the nine months that ended on Sept. 30, 2011, from an average of 45.60 to $1 in 2010.
As a result, the company’s net income fell by 54 percent to P2.22 billion from P4.832 billion in 2010.
Earlier this year, Cebu Pacific removed its fuel surcharges on all its flights to attract more customers. The company, however, decided to bring back the surcharges due to rising costs.
