Flights to the Philippines Are About to Get Pricier
- Cebu Air says monthly expenses are rising by about $13 million
- Philippine Airlines says peso’s drop also hurting demand
Photographer: Edwin Tuyay/Bloomberg
This article is for subscribers only.
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 travelers also hurt by the currency’s decline.
“We will have to adjust prices accordingly,” said Lance Gokongwei, president of Cebu Air Inc., which owns the nation’s largest budget carrier. Cebu Air and market leader Philippine Airlines Inc. said they’ve applied for regulatory approval to add fuel surcharges imposed on customers.