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MANILA, Philippines — The Civil Aviation Authority of the Philippines (Caap) on Wednesday said that it is giving AirAsia Philippines until June 6, 2026 to settle its unpaid financial obligations.

Caap issued the statement after a cease and desist order was reportedly issued against AirAsia Philippines over P271.9 million in airport charges and other obligations allegedly owed by the airline.

“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,” it said in a statement.

The agency then recognized that any interruption to airline operations carries significant economic effects, including employment displacement, as well as interruptions to passenger and cargo services.