AirAsia Philippines given until June 6 to pay debts

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MANILA, Philippine – The Civil Aviation Authority of the Philippines (CAAP) on Wednesday has given AirAsia Philippines until June 6 to settle its outstanding obligations, while favoring a negotiated settlement to avoid operational disruptions.

“Caap clarifies that AirAsia Philippines has been given until June 6, 2026 to settle its outstanding financial obligations. The Authority and the airline have been in discussion on this matter since last year,” the agency said in a statement.

READ: AirAsia Philippines says flights to continue amid unpaid fees

“Any interruption in airline operations carries significant consequences, including economic impacts, potential employment displacement and disruption to passenger and cargo services,” it added. “Accordingly, the settlement of the obligations remains the most practical and preferred course of action.”