The new year brings in travel updates that encourage you to travel more.
Images: Image: Unsplash
Suppose you've been planning a trip and are looking for cheap flights this 2024
. In that case, you're in luck because starting in January, plane fares of flights for January 2024
will be more affordable because the government is reducing the fuel surcharge.
The Civil Aeronautics Board (CAB) recently announced that airlines will only be allowed to charge a Level 6 fuel surcharge in January instead of the Level 7 surcharge in December. According to the CAB's chart, airlines can only add a fuel surcharge of around PhP185 to PhP665 for domestic flights. For international flights, it will be around PhP610.37 to PhP4,538.40.
CAB instructed airlines to apply for the fuel surcharge before January. For airfares to be collected in a foreign currency, the conversion rate will be PhP55.6 to USD1.
Traveling domestically and internationally will surge when airfare tickets are cheap.
This would be the first time the fuel surcharge drops; there will be cheap flights this 2024, and airfares will get even lower
after CAB maintains it at Level 7 these last months of 2023. It was at Level 7 for the past few months but at Level 6 in September and October. Then, in November and December, it went back up to Level 7 because of changes in the global prices of jet fuel.
Airlines may charge extra money to their passengers to help cover the costs of the fuel they use. This is because the price of jet fuel can change and fluctuate, and airlines want to make sure they don't lose too much money.
In 2024, the International Air Transport Association (IATA) predicts that jet fuel will cost around USD113.8 per barrel. IATA also indicates that the aviation industry will use about 99 billion gallons of fuel.
The IATA says that the high price of crude oil for jet fuel will make things even more expensive for airlines. They expect the cost of turning crude oil into jet fuel will be about 30% higher in 2024.
Passengers are lining up at NAIA Airport.
Image: Ninoy Aquino International Airport Facebook page
The two most prominent airlines in the country, Philippine Airlines and Cebu Pacific, are hopeful about the New Year. They believe people will want to travel by plane again because of the cheap flights in 2024, which is good for their business.
Problems in Gaza and Ukraine pose threats, though, because jet fuel prices increase due to political instability.
Cebu Pacific shall increase its capex guidance for about PhP50 billion to get 92 new aircraft by the end of 2024. PAL and Cebu Pacific plan to spend more money next year to buy new planes. This will help them offer more flights and allow more passengers to visit more places.
If you've been saving up for a trip and want to avail cheap flights this 2024, this news makes it an excellent time to start planning for trips and flights for January 2024.
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