The Civil Aviation Authority of the Philippines (CAAP) has set a final deadline of 6 June, 2026, for AirAsia Philippines to clear its unpaid financial dues, warning that failure to comply will result in a full shutdown of its operations.
In a statement, the regulator noted that talks regarding the outstanding amount have been ongoing since last year. CAAP records show the airline’s unpaid balance reached P271.94 million as of May 20, not including additional charges such as penalties, surcharges, and interest.
On June 2, CAAP formally issued a cease and desist order (CDO) over the unpaid debt. The agency explained it first sent a formal demand letter on May 11, but the airline did not settle the amount, submit a viable payment plan, or agree on acceptable terms to delay enforcement action.
The order becomes effective three days after AirAsia Philippines receives it. Once in force, the airline will be required to immediately suspend all commercial flights, business activities, and use of airport facilities managed by CAAP. The regulator added that no access to airport services or operational allowances will be approved unless explicitly authorized by CAAP leadership in writing.
This development highlights strict enforcement of financial compliance rules in the aviation sector, with direct impact on thousands of passengers and domestic air travel connectivity should the airline fail to meet the deadline.
