The Civil Aviation Authority of the Philippines (CAAP) has issued a final demand letter to AirAsia Philippines for PHP 833.7 million ($14.5 million) in unpaid fees, giving the airline five days to settle or face license suspensions and restricted airport access, as reported by local news outlets. With interest and penalties, total obligations could reach or exceed PHP 1 billion ($17.4 million).
The outstanding amount, calculated as of December 31, 2025, and net of payments made through February 13, 2026, covers unpaid air navigation, landing, and parking fees, as well as unremitted domestic passenger service charges collected from passengers.
AirAsia Philippines, led by President Suresh Bangah, told local media that the matter is being internally addressed with the regulator.
CAAP outlined a range of potential consequences if the airline fails to comply, including the withholding of services and accounting clearances, the suspension or non-renewal of licenses and permits, and the revocation of access passes at CAAP-run facilities. The regulator may also pursue civil and criminal action to recover the amounts owed.
A key point of contention involves domestic passenger service charge collections, which CAAP said includes funds from expired and unutilized tickets. The regulator emphasized that such collections are trust funds that must be properly accounted for and remitted.
“Despite repeated written demands, reconciliation meetings, and follow-ups, the foregoing obligations remain outstanding as of date. This continued non-compliance is a matter of serious concern to the Authority,” CAAP said in a statement.
The regulator’s move comes just ahead of the busy Easter week travel season, raising concerns about potential passenger disruption. CAAP indicated it may take calibrated steps, such as limiting access at certain airports, to address the situation.
The airline is also navigating a challenging environment as soaring jet fuel costs linked to the ongoing Middle East conflict continue to weigh on carriers across the region.
AirAsia Philippines, part of the AirAsia Group led by Malaysian entrepreneur Tony Fernandes, currently operates 15 Airbus A320 aircraft serving domestic and international routes.
Expansion continues with new Vietnam routes
Despite the financial pressure, AirAsia Philippines has continued to grow its international network. The carrier recently launched its maiden flight from Ninoy Aquino International Airport (MNL) to Hanoi’s Noi Bai International Airport (HAN), adding to its recently introduced Manila-Da Nang service.
The new routes position Hanoi as a gateway to northern Vietnam, including Ha Long Bay and Ninh Binh, while Da Nang connects travelers to the historic towns of Hoi An and Hue.
Starting March 29, 2026, all of AirAsia Philippines’ international flights will transition from NAIA Terminal 3 to Terminal 1.