The Civil Aviation Authority of the Philippines confirmed that the low‑cost carrier has paid its outstanding liabilities of over eight hundred thirty‑three million pesos, averting threats of operational bans. Both parties emphasized ongoing cooperation and the continuation of scheduled flights across the network.
The Civil Aviation Authority of the Philippines (CAAP) announced that the national carrier has fulfilled the demand to clear its pending dues on the morning of June 4, concluding the payment while standard reconciliation procedures continue.
The regulator expressed appreciation for the airline's willingness to cooperate and its proactive approach in addressing financial obligations through constructive dialogue and coordination with the authority. This development follows a series of warnings issued by CAAP, which had urged the low‑cost carrier to settle outstanding receivables totaling eight hundred thirty‑three million six hundred fifty‑six thousand fifty pesos and seventy‑one centavos as of the end of 2025, after accounting for payments received up to February 13, 2026 and before any penalties or interest for delayed remittances are applied.
The airline's arrears comprise several categories of fees that are essential to the operation of the aviation system. These include unpaid air navigation charges, fees for aircraft landing and parking, passenger service charges, and unremitted Domestic Passenger Service Charges that arise from expired or unused tickets and are held in trust for the benefit of the regulatory body.
By settling these accounts, the carrier not only avoids potential sanctions but also contributes to the stability of the broader air transport network, ensuring that essential services remain uninterrupted for travellers across the archipelago. In a separate communication, the airline confirmed that its flight schedule remains fully intact, with all routes and services proceeding as planned throughout its network, subject only to routine operational considerations such as weather conditions and other standard factors that affect airline performance.
The statements from both CAAP and the airline were issued amid circulating reports that the carrier could face suspension of operations at airports overseen by the authority if the financial obligations were not resolved. The regulator reaffirmed its commitment to collaborate closely with all stakeholders in the aviation sector to uphold regulatory compliance, preserve the smooth functioning of air transport operations, and protect the interests of the travelling public.
The airline, for its part, reiterated its dedication to maintaining uninterrupted service and highlighted that no flight cancellations or disruptions are expected as a result of the recent financial settlement
Civil Aviation Authority Of The Philippines Airline Debt Settlement Air Navigation Charges Flight Operations Regulatory Compliance
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