MANILA, 18 March 2026: The Philippines Department of Transport has ordered a reduction in Passenger Service Charges (PSC) and airport navigation charges to reduce the operating costs for airlines amid rising fuel prices
The move will ease the burden on airline passengers amid rising jet fuel costs worldwide due to the war in the Middle East.
In a news release reported by the Philippine News Agency, Acting Transportation Secretary Giovanni Lopez said he had given the order to the Civil Aviation Authority of the Philippines (CAAP), which will apply to all CAAP-operated airports in the country.
According to the Department of Transportation’s latest data, jet fuel costs have risen from USD90.87 per barrel on 19 February to USD188.2 per barrel on 9 March, PNA reported.
Since then, global jet fuel prices have surged to between USD190 and USD200 per barrel due to the escalating crisis in the Gulf (specifically involving Iran and its blockade of the Strait of Hormuz).
In the Philippines, fuel surcharges are regulated by the Civil Aeronautics Board (CAB).
The following airlines and regulatory bodies are currently addressing fuel surcharge adjustments in the Philippines.
Major Philippine carriers
While no airline can unilaterally raise surcharges without CAB approval, the “Big Three” have confirmed they are reviewing their pricing:
- Cebu Pacific: Recently stated it is “closely reviewing pricing and network strategies.” The airline has already suspended flights to Riyadh due to safety concerns and warned that the doubling of jet fuel prices will inevitably pressure operations.
- AirAsia Philippines: Has acknowledged the crisis’s potential impact and is monitoring market conditions. Its regional parent company has already begun adjusting surcharges in other Asian markets.
- Philippine Airlines (PAL): While more resilient due to its long-haul hedging, PAL is subject to the same CAB-mandated surcharge levels as other domestic carriers and is expected to follow the industry-wide upward trend.
International airlines serving the Philippines
Several regional airlines with heavy traffic to and from Manila have already announced or implemented increases:
- Firefly: Implementing a “Phase 2” surcharge adjustment specifically for the Philippines starting 25 March 2026.
- Hong Kong Airlines: Raised surcharges on 12 March 12, 2026, for several regions, including the Philippines.
- Air India / Air India Express: Introduced a phased increase on 12 March, affecting routes to Southeast Asia, including the Philippines.
- Cathay Pacific: Confirmed surcharges will rise soon. Current fees range from HKD142 to HKD569 and are under review.
(Source: PNA with additional reporting)
