The Civil Aviation Authority of the Philippines (CAAP) is demanding that budget air carrier AirAsia Philippines pay more than P833 million in unpaid fees and unremitted passenger charges.

In an advisory on Tuesday, the Department of Transportation-attached agency confirmed that it issued a collection letter to the airline as part of its regular business processes.

Collection letter issued to AirAsia Philippines

“The CAAP confirms that it has issued a collection letter to AirAsia Philippines regarding its outstanding account, as part of its regular business processes,” the advisory read.

Based on CAAP’s final demand letter to AirAsia Philippines, addressed to chief financial officer Lee Chue Yee, the amount covers unpaid air navigation charges, aircraft landing and parking fees, passenger service charges, and Domestic Passenger Service Charges (DPSC) from expired or unutilized tickets — funds held in trust for CAAP.

Citing data as of end 2025, CAAP said AirAsia’s unsettled accounts reached P833.656 million net of payments made up to 13 February, excluding penalties and interest.

“Notwithstanding our prior correspondence dated 12 December 2025 and subsequent follow-ups, AirAsia has failed to fully remit DPSC collections, including those derived from expired and unutilized tickets,” the letter read.

Still in the process of verifying data

This reporter reached out to AirAsia Philippines for comment, but the airline said it is still in the process of verifying data with CAAP.

AirAsia is a low-cost carrier in five ASEAN countries, including the Philippines. Since 2001, it has carried over 800 million passengers across 130 destinations with more than 200 aircraft.

The airline is expanding as a global low-cost network carrier and aims for net zero emissions by 2050, cutting 130,000 tonnes of CO2 and saving $40 million in fuel in 2023.