The Civil Aviation Authority of the Philippines (CAAP) has warned AirAsia Philippines that it could be forced to stop all operations if it does not settle outstanding financial dues amounting to P271.94 million.
In a cease-and-desist order dated June 2, 2026, the regulator said the unpaid balance stood at P271.94 million as of May 20. This amount does not yet include additional charges such as surcharges, penalties, and interest that have accumulated due to delayed payments.
CAAP explained it first sent a formal demand letter on May 11, 2026, giving the airline a set period to settle the debt. However, the budget carrier did not pay the amount due, nor did it submit any acceptable payment plan or arrangement that would justify holding off on enforcement actions.
Under the order, AirAsia Philippines must halt all commercial flights, business activities, and use of airport facilities under CAAP’s supervision three days after receiving the notice. The regulator added that no special allowances or airport access will be granted to the airline unless approved in writing by CAAP officials.
In response, AirAsia Philippines issued a statement assuring the public that it continues to operate normally despite the order. “AirAsia Philippines assures the traveling public that it remains fully operational, with flights and services continuing as scheduled across its network,” the airline said, adding that flights are only affected by usual factors such as weather conditions.
This development affects thousands of passengers and highlights strict regulatory enforcement in the aviation sector, with potential impact on domestic travel costs, connectivity, and competition among local carriers.
