Airlines warn airfare rise as fees adjusted

Airline firms warned on Thursday that the recent hike in takeoff and landing fees is expected to push up airfares.

However, the private airport operators argued that major adjustments are typically driven by demand rather than operational cost increases.

In a media statement on Thursday, Gokongwei-led budget carrier Cebu Pacific (CEB) reiterated that increases in landing and takeoff fees at Ninoy Aquino International Airport (NAIA) will impact both airlines and passengers.

“We recognize that it is necessary to invest in the improvements in both hard and soft infrastructure and look forward to working closely with NNIC for the benefit of our passengers,” CEB said.

Despite the increase, CEB said it remains optimistic that the changes would lead to “more streamlined operations and better services,” benefiting both travelers and airlines in the long term.

Everyone can fly

AirAsia Philippines also responded to the fee hike, which was outlined in the Manila International Airport Authority’s (MIAA) Administrative Order 1, Series of 2024, published on 4 September.

The airline, led by Malaysian businessman Tony Fernandes, noted that the adjustments would likely influence overall ticket pricing but is still evaluating the full operational impact.

“While these adjustments present challenges, our guests can count on our brand promise of offering reasonable fares, so that everyone can fly,” AirAsia Philippines head of communications and public affairs Steve Dailisan said.

Meanwhile, flag carrier Philippine Airlines has yet to comment on the matter.

In a separate interview on the second day of the Aviation Summit on Thursday, New NAIA Infra Corp. (NNIC) general manager Angelito Alvarez pointed out that airline fare rates fluctuate due to revenue management strategies rather than operational costs like take-off and landing fees.

“Any increase in (air ticket) rates is all on revenue management. Aren’t you surprised when you get a ticket on Friday, the ticket seems to be more expensive, but you buy a ticket on Tuesday, it changed,” Alvarez said.

“When you bought a ticket a year ago to go to Singapore, you only got this rate? Why did the price suddenly increase when it was announced that Taylor Swift was coming? What happened? Was it because of the take-off and landing fees? It’s not. That’s a revenue management scheme,” he added.

NNIC is investing approximately P144 billion to operate and upgrade NAIA under a 15-year concession, with a possible 10-year extension contingent on meeting performance targets.