AirAsia Philippines faces shutdown order over US$4.7M in unpaid airport charges

The Civil Aviation Authority of the Philippines (CAAP) has ordered AirAsia Philippines to stop operating at all government-managed airports over PHP 271.94 million (US$4.7 million) in unpaid fees.

As reported by local media in the Philippines, CAAP Director General Raul del Rosario signed a cease-and-desist order on June 2, 2026, directing the budget carrier to halt operations within three days of receiving the notice. The order cited AirAsia’s continued failure to settle its obligations despite repeated collection efforts.

The unpaid amount covers air navigation charges, aircraft landing and parking fees, passenger service charges, and other airport-related assessments accumulated from 2021 through May 2026. The figure excludes additional penalties, surcharges, and interest that may have accrued from delayed payments.

Under the order, AirAsia Philippines will be barred from accessing airport facilities and services at CAAP-operated airports unless authorized in writing by the agency. CAAP said the suspension would be without prejudice to other legal, administrative, or civil actions it may pursue to recover the outstanding amount.

CAAP had previously issued a formal demand letter on May 11, 2026 requiring the airline to fully settle its obligations within a prescribed period. According to the regulator, no payment, settlement proposal, or other arrangement had been received by the deadline.

AirAsia says it remains fully operational

AirAsia Philippines, as reported by Philippine media outlet ABS-CBN, said on June 3, 2026 that it remains fully operational despite the cease-and-desist order.

“AirAsia Philippines assures the travelling public that it remains fully operational, with flights and services continuing as scheduled across its network, subject to normal operational considerations such as weather and other standard factors affecting airline operations,” the airline said in a statement.

The airline had earlier signaled its intention to pay the remaining balance within the week. Cebu Pacific and Philippine Airlines may be called on to operate rescue flights if AirAsia is forced to suspend operations at affected airports.

How it got here: US $14.5 million in unpaid fees

The dispute dates back to March 2026, when CAAP issued a final demand letter to AirAsia Philippines for PHP 833.7 million (US$14.5 million) in unpaid fees, giving the airline five days to settle or face license suspensions and restricted airport access. With interest and penalties, total obligations at the time could have reached or exceeded PHP 1 billion (US$17.4 million).

The outstanding amount, calculated as of December 31, 2025, and net of payments made through February 13, 2026, covered unpaid air navigation, landing, and parking fees, as well as unremitted domestic passenger service charges collected from passengers. CAAP emphasized that such collections are trust funds that must be properly accounted for and remitted.

The airline has since reduced its liabilities from PHP 833.7 million (US$14.5 million) to PHP 271.94 million (US$4.7 million) through a series of payments, but the regulator said the remaining balance had not been settled by its latest deadline.

AirAsia Philippines, part of the AirAsia Group led by Malaysian entrepreneur Tony Fernandes, currently operates 15 Airbus A320 aircraft serving domestic and international routes.

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