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Fuel Price Impact



August 27, 2008

Cebu Pacific cut fares for passengers without check-in bags
As part of its saving measures, Philippines’ Cebu Pacific airlines is giving its customers another promo package by offering 200 peso ($4.42) fare discount if the passengers will not check in their bags and reduce its free baggage allowance (FBA) for all bookings made starting September 2, 2008, reported national news agency PNA.

Candice Iyog, vice president for marketing and product, explained the new offering is in line with the company’s effort to reduce its fuel cost which affected them especially during the previous months when the prices per barrel in the international market reach as high as $141.

A lighter aircraft would burn less fuel so if passengers travel light, our fuel costs would likewise go down and we are able to pass on the savings to our passengers, Iyog said.

She noted that CEB will lower its FBA from 20kgs to 15kgs per passenger, except for the Boracay (Caticlan) flights which will still be at 10kg.

On the other hand, CEB will honor the 20kgs FBA made before the September 2 bookings. The maximum weight allowed for hand-carried luggage remains at 7kg per passenger, except for Boracay (Caticlan) which is maintained at 5kgs per passenger.

We are always looking for ways to reduce the fare paid by our passengers and since we are able to save on fuel when carrying less weight on our flights, we want to reward people who dont have check-in bags, added Ms. Iyog.

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