Airlines propose an additional fee before new year
Heads up, travelers: You may expect airfare hikes before the year ends as airlines propose an additional fee due to the increasing cost of flying to the Ninoy Aquino International Airport (NAIA).
According to a report by The Philippine STAR, airlines are proposing to the Civil Aeronautics Board (CAB) to implement up to a P300 additional fee per flight to cover the rising flight costs to NAIA.
For domestic flights, carriers Philippine Airlines (PAL), Cebu Pacific, and AirAsia Philippines propose a P75 terminal enhancement fee per way, meaning passengers must pay an additional P150 or more for a round trip.
For international flights, Cebu Pacific and PAL are seeking a terminal enhancement fee of P300 per flight, while AirAsia Philippines is proposing a P275 fee for foreign trips within Southeast Asia and Northeast Asia.
The additional fees will cover the higher service charges at NAIA imposed by the New NAIA Infrastructure Corp. (NNIC) following the takeover in September.
In line with the rehabilitation project, NNIC said that they will invest at least P170 billion, which is projected to generate about P1 trillion in revenues for the government.
This left the airlines to shell out a combined P6.25 billion to cover the increasing cost.
As per the report, sources said that the CAB is set to hold a board meeting later this month to discuss the proposed terminal fees.
If approved, the fee will be shown in the booking receipt in addition to the base fare, fuel surcharge, passenger service charge (PSC), and value-added tax.
In an advisory on Sept. 25, the NNIC said terminal fees for domestic flights will increase from P200 to P390, while terminal fees for international flights will hike from P550 to P950. The management added that the Department of Transportation (DOTr) and the Asian Development Bank (ADB) compared the new rates against international standards, which they said reflects the costs of operating a modern airport.
The said adjustments are set to be implemented in September 2025.
