Travellers planning domestic or international trips from the Philippines may see lower airfare costs in the second half of August 2026 after the Civil Aeronautics Board (CAB) reduced the airline fuel surcharge by one level.
The CAB announced that the fuel surcharge would be lowered from Level 13 to Level 12 for the period from 16 to 30 August. The adjustment could reduce the additional charges included in airline tickets for both domestic and international flights.
The lower surcharge comes as travellers begin planning trips for the upcoming Undas and Christmas holiday periods. It may provide an opportunity for passengers booking flights to destinations such as Manila, Cebu, Boracay and other locations in the Philippines, as well as international destinations.
At Level 12, airlines may impose a fuel surcharge ranging from PHP389 to PHP1,137 for domestic flights. For international flights, the surcharge may range from PHP1,284.40 to PHP9,550.13, depending on the distance of the journey.
The CAB said airlines intending to collect the fuel surcharge must submit an application to the agency. It also set the exchange rate at PHP61.30 to US$1 for airlines operating in foreign currencies.
Lower Fuel Prices Lead to Reduced Surcharge
The adjustment follows changes in jet fuel prices in recent weeks. Jet fuel prices rose to US$160.06 per barrel during the final week of July after falling to US$127.06 per barrel two weeks earlier.
Prices subsequently declined and stood at US$146.93 per barrel as of 7 August.
Fuel surcharges are separate charges that airlines may add to fares to help cover fluctuations in aviation fuel costs. The amount is regulated through the CAB’s surcharge levels, which are reviewed according to movements in fuel prices and other relevant factors.
The reduction from Level 13 to Level 12 could therefore result in lower overall ticket prices, although the final fare paid by passengers will continue to depend on factors such as the airline, route, travel date, booking period and the availability of promotional fares.
The timing is particularly relevant for travellers preparing for the Philippines’ upcoming holiday travel season. Demand for flights typically increases during Undas, or All Saints’ Day and All Souls’ Day, as well as during the Christmas and New Year period.
Passengers planning to travel during these periods may benefit from checking fares early, particularly as lower fuel surcharges could coincide with airline promotions and advance booking offers.
Cebu Pacific to Resume International Flights from Davao
Meanwhile, Cebu Pacific has announced the return of direct international services from Davao, expanding travel options for passengers in Mindanao.
The low-cost carrier will resume flights between Davao and Hong Kong from 25 October. Direct services between Davao and Bangkok, via Don Mueang International Airport, will follow from 26 October.
The international routes had previously been suspended as part of efforts to reduce fuel consumption. The decision was announced in March after fuel prices increased amid geopolitical tensions in the Middle East.
In addition to the international routes, Cebu Pacific will increase the frequency of selected domestic services from Davao. Flights to Siargao will operate 10 times a week, while flights to Iloilo will increase to 14 times weekly.
The developments provide additional travel options for passengers flying from Davao while the lower fuel surcharge may help reduce the overall cost of air travel during the second half of August.
Travellers are advised to check directly with their chosen airline, as the final ticket price will depend on the applicable fuel surcharge, taxes, route and fare availability at the time of booking.
