PETALING JAYA: AirAsia X Bhd
has reaffirmed its commitment to the Philippines market after its local unit settled outstanding dues, averting a potential operating restriction at airports under the Civil Aviation Authority of the Philippines (CAAP).
It said the reports that Philippines AirAsia – operating under flight code “Z2” – was grounded were “entirely false”.
“All Z2 flights remain fully operational, with flights and services continuing as scheduled across our network, subject to normal operational considerations such as weather and other standard factors affecting airline operations,” it said in a statement.
AirAsia also criticised what it described as “sensationalised reports” and a “smear campaign aimed at undermining fair competition in the Philippine aviation sector”.
Its co-founder and adviser Tan Sri Tony Fernandes said the group remains firmly committed to the country, where it carries almost seven million passengers annually.
“AirAsia will continue to stand firmly against any development that harms consumers or restricts access to air connectivity,” he noted.
Fernandes said AirAsia remains invested in the development of airport infrastructure in the Philippines, including at Ninoy Aquino International Airport and Mactan-Cebu International Airport.
He added that the airline plans to deploy more aircraft to its Philippine operations as it expands its fleet and aircraft order book.
The statement came after CAAP on June 2 issued a cease-and-desist order against Philippines AirAsia over 271.94 million pesos (RM17.4mil) in unpaid fees, comprising air navigation charges, aircraft landing and parking fees, passenger service charges and other airport-related assessments.
The regulator directed the airline to cease operations at airports under its jurisdiction unless the outstanding obligations were settled.
Philippines AirAsia operates flights to six CAAP-managed airports: Francisco Bangoy International Airport in Davao, Iloilo International Airport, Kalibo International Airport, Puerto Princesa International Airport, Bacolod-Silay Airport and Laguindingan Airport in Cagayan de Oro.
Had the airline fail to settle the dues by June 6, its operations would have been limited to airports outside CAAP’s jurisdiction.
CAAP said on June 4 that Philippines AirAsia has paid its outstanding obligations, although the settlement remains subject to ongoing standard reconciliation processes.
“CAAP acknowledges and appreciates the airline’s cooperation and its commitment to addressing its obligations through constructive engagement and coordination with the authority,” it noted in a statement.
For the first quarter ended March 31, 2026 (1Q26), the carrier posted a net loss of RM154.9mil, mainly due to foreign- exchange losses of RM232mil, on a revenue of RM5.95bil.
In 1Q26, it recorded earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM1.01bil and a net operating profit (NOP) of RM199mil, translating into Ebitda and NOP margins of 17% and 3% respectively.
Passenger demand remained strong in 1Q26, with the group carrying 18.9 million passengers, up 9% year-on-year, while maintaining an 85% load factor amid a 10% increase in capacity.
