AirAsia pushes back against grounding reports, says PH operations remain fully active

AirAsia has rejected reports that its Philippine unit has been grounded, insisting that all flights remain operational while warning that attempts to undermine competition could ultimately hurt consumers.

In a statement issued on 4 June, AirAsia Group categorically denied media reports claiming that Philippines AirAsia (flight code: Z2) had been ordered to cease operations, describing the reports as "entirely false" and not reflective of the airline's business or operational reality.

The carrier said all flights and services across its network continue to operate as scheduled, subject to normal operational considerations such as weather and other routine factors affecting airline operations.

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The response comes after Philippine media reported that the civil aviation authority of the Philippines (CAAP) had issued a cease-and-desist order directing the low-cost airline to halt operations at government-owned airports over allegedly unpaid fees amounting to 270 million pesos (US$4 million).

According to media reports, CAAP records show the outstanding amount relates to air navigation, landing, parking and passenger service charges accumulated between 2021 and May 2026, excluding any penalties and interest.

While AirAsia did not directly address the reported outstanding amount, it strongly disputed suggestions that its operations had been suspended.

Separately, the CAAP confirmed that AirAsia Philippines had complied with its directive to settle its financial obligations, subject to ongoing standard reconciliation processes.

Beyond addressing the reports, AirAsia framed the issue as part of a broader challenge facing the country's aviation sector.

The airline said it viewed the "coordinated and sensationalised reports" as part of a deliberate smear campaign designed to undermine fair competition in the Philippine market. According to AirAsia, such narratives could reduce consumer choice and contribute to a less competitive environment, ultimately leading to higher fares and fewer options for travellers.

Tony Fernandes, co-founder and advisor of AirAsia Group, reiterated the airline's long-term commitment to the Philippines and its role in expanding access to affordable air travel.

"AirAsia has long championed affordable travel and will continue to stand firmly against any development that harms consumers or restricts access to air connectivity. AirAsia carries almost seven million guests in the Philippines annually and our commitment to the Philippines is absolute. We are deeply invested in the country, its people and its future," he said.

"For over a decade, we have played a key role in democratising air travel, making flying affordable, fun and accessible to millions of Filipinos who may not otherwise have had the opportunity to travel by air. We have taken out charges that people don't want and made travel more flexible by offering ancillary options."

Fernandes also used the opportunity to highlight AirAsia's growth ambitions in the market, pointing to ongoing investments in airport infrastructure and fleet expansion.

"Looking ahead, we are incredibly invested in the development of new airport infrastructure across the country, including in Ninoy Aquino International Airport (MNL) and Mactan-Cebu International Airport (CEB), which will unlock greater opportunities for growth, improve connectivity, enhance operational efficiency and enable us to lower costs even further," he added.

"As we expand our fleet and aircraft orderbook to become the first narrowbody global low-cost network carrier, we intend to deploy more aircraft into our operations in the Philippines. These developments will allow Philippines AirAsia to expand our network, offer even more competitive fares and continue delivering greater value to Filipino travellers."

Step into PR Asia Philippines 2026 on 9 September in Manila, where communications leaders will unpack the realities of trust, nationalism, misinformation, and polarisation shaping the country’s evolving narrative landscape.

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