CAAP reduces airport terminal and aeronautical fees as fuel prices climb

The Civil Aviation Authority of the Philippines (CAAP) will cut aeronautical fees and passenger service charges at its managed airports starting April 1 to mitigate rising fuel prices. The reductions follow directives from President Ferdinand Marcos Jr. and Transportation Secretary Giovanni Lopez. Rates vary by airport class and travel type.

The Civil Aviation Authority of the Philippines (CAAP) announced reductions in aeronautical fees, including landing and takeoff charges, by up to 50 percent or as much as P5,000 per landing at airports it manages. Excluded are public-private partnership airports such as Ninoy Aquino International Airport (NAIA), Cebu-Mactan International Airport, Cagayan de Oro International Airport, Clark International Airport, and Bohol-Panglao International Airport. The changes take effect April 1 for three months and may be extended pending review, CAAP said. Passenger service charges, or terminal fees, will drop from P900 to P700 for international travel. For domestic travel at international airports, from P350 to P150-P200. Principal Class 1 airports see cuts from P300 to P150-P200; Principal Class 2 from P200 to P100; and community airports from P100 to P50. Transportation Secretary Giovanni Lopez said at a press conference, “We will ensure that all transport groups, including operators, drivers, commuters, can count on the government to help. They can rest assured that we will make various initiatives to alleviate the effects of the conflict in the Middle East.” The move coincides with regulators approving a fuel surcharge increase from Level 4 to Level 8 starting April 1, raising domestic flight surcharges to P253-P787 and international ones to P835.05-P6,208.98. Cebu Pacific has canceled and limited flights due to higher fuel costs. President Ferdinand Marcos Jr. recently declared a state of national energy emergency to implement measures reducing transportation costs.

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Indian aviation minister announces removal of domestic airfare caps at press conference, screen shows airplanes and date March 23, 2026.
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Government removes caps on domestic airfares from March 23

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The Ministry of Civil Aviation has withdrawn temporary caps on domestic airfares effective March 23, 2026. The measure ends restrictions imposed after IndiGo's crisis in December 2025. Airlines have been directed to ensure transparent and reasonable pricing.

Airline companies operating at Ninoy Aquino International Airport appealed to the Department of Transportation for cuts in airport fees as fuel prices rise and flights to the Middle East remain suspended due to regional tensions. Manila International Airport Authority general manager Eric Ines confirmed requests for discounts on landing and parking fees as well as Civil Aviation Authority of the Philippines navigation fees.

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Ugnayan ng mga Lumalaban sa Airport Privatization (ULAP) has asked the Supreme Court to immediately halt the Ninoy Aquino International Airport (NAIA) concession deal and fee increases amid global oil shocks from Middle East tensions. The group filed a second reiterative motion electronically on March 24. It argues the changes impose an unjustified economic burden on Filipinos.

The Department of Transportation is preparing P3.5 billion in subsidies for free rides and fuel costs of public utility vehicles to counter rising oil prices due to Middle East tensions. This forms part of a two-pronged approach to ease the impact on commuters. The program is expected to launch soon after certification from the Department of Energy.

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Amid economic growth and regional agreements, experts argue that the Philippine travel tax is an anachronistic burden that should be phased out. Rooted in history from the 1950s, this levy no longer fits the current era. Its revenues are not effectively used for tourism, sparking frustration among Filipinos.

A week of US-Israeli attacks on Iran and retaliatory strikes into Gulf states has kept much of the Middle East’s airspace closed, driving global airfare surges as airlines reroute flights. This ongoing crisis, following initial disruptions to Gulf hubs like Dubai, has hit Cathay Pacific hardest, with an SCMP analysis showing average 93% jumps in fares to Hong Kong from 57 destinations worldwide.

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The ongoing conflict in the Middle East, involving U.S. and Israeli air assaults on Iran and Iranian retaliatory strikes, has led to widespread flight suspensions by regional airlines. Oil prices have surged over 10% to more than $75 per barrel due to the shutdown of the Strait of Hormuz. Analysts predict potential increases in airfares as airlines face higher fuel costs.

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