Airfares steady as fuel surcharge unchanged in Jan ‘26

Local air passengers should expect no increase in airfares at the beginning of 2026 as fuel surcharge remain stable, according to the Civil Aeronautics Board (CAB).

The CAB maintained a Level 4 status on passenger and cargo fuel surcharge for domestic and international flights in January 2026.

Under Level 4, fuel surcharge ranges from P117 to P342 per passenger on domestic flights.

For international flights, surcharge costs P385.70 to P2,867.82 per passenger.

The surcharge last increased in August 2025 – from Level 3 to Level 4.

Fuel surcharge is a fee that the airline is allowed to charge to customers to safeguard carriers from fluctuating fuel costs. It is computed using a baseline price and current market rates. This is separate from the base fare – the actual amount paid by passengers for an airplane seat.

The International Air Transport Association (IATA) earlier reported a 9.3% drop in global jet fuel prices from last month. Weekly average price stood at $86.88 per barrel.

By January, airlines expect an extension of the holiday travel rush.