Airlines Seek Airport Fee Relief Amid Surging Jet Fuel Costs; CAAP Cuts Fees at Regional Hubs

Airlines Seek Airport Fee Relief Amid Surging Jet Fuel Costs; CAAP Cuts Fees at Regional Hubs

By Bing Jabadan – TheNATIONWEEK.com | March 24, 2026

MANILA, Philippines – As escalating tensions in the Middle East drive global jet fuel prices toward $200 per barrel following Iran’s restriction on oil tanker passage through the Straits of Hormuz, airlines are urgently appealing to the Department of Transportation (DOTr) for significant discounts on critical airport fees, including landing, parking, and Civil Aviation Authority of the Philippines (CAAP) navigation charges.

This plea highlights the direct impact of geopolitical conflicts on airline operational costs and, consequently, air travel affordability.

In a proactive move to mitigate these financial pressures, CAAP has announced substantial reductions in aeronautical and passenger service fees, effective April 1, 2026, for all CAAP-operated airports nationwide.

These measures aim to ease the burden on both carriers and passengers utilizing regional gateways.

CAAP Regional Fee Reductions (Effective April 1, 2026)

Aeronautical Fees (Landing & Takeoff)

• A nearly 50% overall decrease, potentially saving airlines approximately P5,000 per landing.

International Passenger Service Charge (PSC) at International Airports

• Reduced from ₱900 to ₱700.

Domestic PSC at International Airports

• Lowered from ₱350 to a range of ₱150–₱200.

PSC at Principal Class 1 Airports

• Reduced from ₱300 to ₱150–₱200.

PSC at Principal Class 2 Airports

• Decreased from ₱200 to ₱100.

PSC at Community Airports

• Lowered from ₱100 to ₱50.

CAAP Director General Lt. Gen. Raul del Rosario reiterated the authority’s commitment to bolstering the aviation industry and ensuring accessible air travel amidst current global challenges.

NAIA and Major Hubs: Awaiting Action Amid New Fee Structure

Despite CAAP’s swift response for regional airports, major hubs like Ninoy Aquino International Airport (NAIA), Mactan-Cebu International Airport (MCIA), Clark International Airport (CRK), and Cagayan de Oro (Laguindingan) Airport are excluded from these immediate discounts.This distinction arises from their operation under Public-Private Partnership (PPP) agreements.

Airlines’ calls for NAIA fee adjustments coincide with the recent implementation of the Manila International Airport Authority (MIAA) Revised Administrative Order (A.O.) No. 1, series of 2024. This new order, effective 15 days after its final publication (following Cabinet approval on September 4, 2024), prescribes updated fees and charges for NAIA facilities and services.

MIAA General Manager Eric Jose Ines acknowledged airline concerns, emphasizing that while airport fees contribute to operational costs, the sharp increase in jet fuel prices remains the primary driver of financial strain for carriers.

Discretion and Process: The Two Tiers of Fee Adjustment

The new MIAA A.O. distinguishes between “Regulated” and “Non-Regulated” fees:

Regulated fees, mandatory for airlines and passengers, require a rigorous adjustment process involving public consultation and approval from the MIAA Board, DOTr Secretary, and the Cabinet.

Non-Regulated fees, can be adjusted at the discretion of the airport operator (New NAIA Infra Corporation (NNIC) for NAIA) without extensive administrative oversight.

Airlines are currently developing recommendations for fee adjustments at these non-CAAP operated airports.

MIAA will then engage with its concessionaire, NNIC, to discuss potential changes for NAIA. Any proposed adjustments for NAIA would ultimately require recommendations to the DOTr Secretary, followed by Cabinet and Presidential approval. Decisions for Clark and Cebu airports rest with their respective operating companies.

NAIA Transition: Operator vs. Regulator and Public Scrutiny

On September 14, 2024, the DOTr and MIAA formally transferred management of NAIA to the San Miguel Corporation-led New NAIA Infra Corporation (NNIC).

This marked the beginning of a 15-year concession for rehabilitation and modernization, aiming to improve facilities, increase capacity from 35 million to 62 million passengers annually, and reorganize terminal usage to alleviate congestion.

Key Details of NNIC’s NAIA Concession

Operator

• New NAIA Infra Corporation (NNIC).

Duration

• 15-year concession contract.

Immediate Improvements (3-12 months)

• Repairs to escalators, elevators, walkalators, air conditioning; improved Wi-Fi, increased seating, upgraded restrooms.

Long-term Goals

• Upgraded baggage handling systems, enhanced security equipment, expanded capacity.

Planned Terminal Reassignments

• Terminal 1 for Philippine Airlines (PAL), Terminal 2 for PAL and AirAsia domestic flights, Terminal 3 for Cebu Pacific and International Carriers.

Financial Commitment

• NNIC paid an upfront premium of P30 billion, with an additional P2 billion annual payment plus a percentage of revenues.

While NNIC manages airport operations, MIAA’s role has transitioned to a regulatory body, tasked with monitoring compliance with the concession agreement. 

However, recent public observations suggest that despite increased fees under the new regime, visible improvements at NAIA terminals remain limited, prompting questions about MIAA’s effectiveness in its new regulatory capacity.