CBEU Air: to review pricing to minimize impact of fuel prices

Airlines in the Philippines, including budget carrier Cebu Pacific (CEB), are reassessing pricing strategies amid a sharp surge in jet fuel costs driven by escalating geopolitical tensions in the Middle East. Jet fuel prices have nearly doubled in recent weeks, climbing to $180–$200 per barrel from $80–$85 previously, according to CEB President Alexander Lao. This increase follows a broader spike in global crude prices, which have risen from $60 to $110 per barrel, compounding operating costs for airlines reliant on imported fuel.

While CEB has not immediately adjusted fares, executives emphasized that pricing decisions remain contingent on market demand and the evolving geopolitical landscape. "Pricing is highly dynamic—if we price too much, people may not purchase," Lao noted, highlighting the airline's balancing act between cost recovery and maintaining its low-fare model. To mitigate fuel cost pressures, CEB leverages a fleet where 70% consists of fuel-efficient aircraft with technology reducing fuel consumption by 15–20%. Additionally, the airline's limited exposure to Middle East routes—primarily Dubai and Riyadh— reduces direct operational risks, though recent safety concerns led to temporary suspensions of flights to Riyadh.

CEB continues promoting discounted fares, including its signature "piso sales," to stimulate demand, with Chief Marketing Officer Candice Iyog stating, "We will keep fares low as much as possible". The airline conducts weekly reviews of fuel costs, market conditions, and route performance to determine future adjustments. AirAsia Philippines has similarly acknowledged the potential impact of rising fuel prices and is evaluating its cost structure.

With Brent crude prices remaining volatile, airlines face ongoing challenges in maintaining profitability while preserving affordability for price-sensitive travelers in the Philippines.