AirAsia Philippines (Z2) avoids suspension of operations, settles financial obligations with Philippine government

AirAsia Philippines has averted a suspension of its operations after it settled its financial obligations to the Philippine government.

The Philippine-based AirAsia carrier settled the outstanding obligations from the end of May 2026 worth around PHP270 million (~USD $4.39 million) to the Civil Aviation Authority of the Philippines (CAAP) after receiving a cease-and-desist order letter by the agency on June 2. CAAP set the deadline for the payments to be completed on June 6. it covers unpaid landing and takeoff fees, parking fees, and other airport-related fees for operations at CAAP-operated airports.

"CAAP acknowledges and appreciates the airline’s cooperation and its commitment to addressing its obligations through constructive engagement and coordination with the Authority.”

CAAP is the primary operator of airports within the Philippines excluding those managed by separate corporate or government organizations such as Manila’s Ninoy Aquino International Airport and the Mactan-Cebu International Airport.

Amid the reports of a shutdown of its operations AirAsia Philippines issued a statement on June 3 assuring customers that it operations were normal. “AirAsia Philippines assures the traveling public that it remains fully operational, with flights and services continuing as scheduled across its network, subject to normal operations considerations such as weather as other standard factors affecting airline operations.”

The airline also called the reports “coordinated and sensationalised,” and part of deliberate smear campaign that has long been occurring aimed at undermining fair competition in the Philippine aviation sector.

“AirAsia Group views these coordinated and sensationalised reports as part of a deliberate smear campaign that has long been occurring aimed at undermining fair competition in the Philippine aviation sector. Such narratives serve only the interests of those seeking to limit consumer choice and create conditions that could lead to a monopoly in the market. A monopoly benefits no one except dominant market players. For travellers, it often results in reduced competition, fewer choices and significantly higher airfares.”

AirAsia Co-Founder and current Advisor of AirAsia Group Tony Fernandes also added: “AirAsia has long championed affordable travel and will continue to stand firmly against any development that harms consumers or restricts access to air connectivity.”

AirAsia Philippines (Z2) operates domestic and international flights from its hubs at Manila and Cebu. Separately, AirAsia Malaysia (AK) also operates its own flights between Manila and Kuala Lumpur.

According to data from the Philippine Civil Aeronautics Board (CAB), AirAsia Philippines (Z2) served around 5.62 million passengers in 2025. It is a decrease from the 6.33 million served the year prior (2024), and 71% compared to the pre-pandemic high set in 2019 of 7.83 million.