Flights to the Philippines are about to get pricier
Airlines in the Philippines are under pressure to raise ticket prices to offset rising fuel costs and the peso’s plunge to an almost 12-year low, risking lower demand from travellers also hurt by the currency’s decline. “We will have to adjust prices accordingly,” said Lance Gokongwei, president of Cebu Air, which owns the nation’s largest budget carrier. Cebu Air and market leader Philippine Airlines said they’ve applied for regulatory approval to add fuel surcharges imposed on customers. Philippine Airlines incurs US$11m a year in additional costs for every $1 increase in the price of a barrel of fuel. The carrier consumes about 11m barrels a year, while the price of jet fuel has risen by $13 from January to April. Cebu Air’s costs are increasing by $13m a month from a year ago with jet fuel prices hitting $87 per barrel. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-05-29/unaligned/flights-to-the-philippines-are-about-to-get-pricier
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Flights to the Philippines are about to get pricier
Airlines in the Philippines are under pressure to raise ticket prices to offset rising fuel costs and the peso’s plunge to an almost 12-year low, risking lower demand from travellers also hurt by the currency’s decline. “We will have to adjust prices accordingly,” said Lance Gokongwei, president of Cebu Air, which owns the nation’s largest budget carrier. Cebu Air and market leader Philippine Airlines said they’ve applied for regulatory approval to add fuel surcharges imposed on customers. Philippine Airlines incurs US$11m a year in additional costs for every $1 increase in the price of a barrel of fuel. The carrier consumes about 11m barrels a year, while the price of jet fuel has risen by $13 from January to April. Cebu Air’s costs are increasing by $13m a month from a year ago with jet fuel prices hitting $87 per barrel. <br/>
