PAL to raise fees for customer services

MANILA, Philippines—Feeling the pinch of rising costs, flag carrier Philippine Airlines (PAL) is raising fees for various services to customers.

The company this week announced that effective April 1, the company said it would charge a service fee for the issuance of domestic and international tickets.

The service charge for the issuance of domestic tickets will increase to P100 (exclusive of value-added taxes or VAT) while international tickets will henceforth carry a $5 service charge (inclusive of VAT), according to PAL.

Likewise, the fee for the issuance of a booking and flight certificate will be P200 (exclusive of VAT) while a P50 fee (exclusive of VAT) will be collected for the issuance of an itinerary receipt.

PAL said the increase in service fees would make up for the rise in various costs such as employee salaries and other operating expenses. Due to stiff competition, the company said it has not been able to raise ticket prices substantially.

“All charges and fees are non-refundable,” the Lucio Tan-led carrier said.

PAL’s “million milers” or frequent fliers will not be charged the fees. Passengers with re-issued tickets will also be exempt from paying.

Earlier this month, PAL announced a hike in fuel surcharges, which were paid by passengers on top of basic ticket prices, to cope with the rising cost of fuel. Based on its latest financial statement, PAL said nearly 60 percent of its expenses has been going to fuel.

The hike in service fees and surcharges come in time for the summer break, where passenger traffic is expected to be higher than any other time of the year.

PAL previously reported a net loss of $33 million for the October to December 2011 period—the third quarter of the company’s fiscal year that ends this month. This came amid rising fuel costs and a 3.8 percent year-on-year decline in revenues to $386 million.

The price of jet fuel reached $133.4 per barrel as of March 16, data from the International Air Transport Association (IATA) showed. This is 3.6 percent higher than year-ago levels.