Airlines Seek Approval for Terminal Fee to Counter NAIA Operational Cost Hike

To cover rising operational costs at Ninoy Aquino International Airport (NAIA), domestic airlines Philippine Airlines (PAL), Cebu Pacific, and AirAsia Philippines have proposed a new "terminal enhancement fee." The fee aims to offset higher service charges imposed by the New NAIA Infrastructure Corp. (NNIC), which has increased landing, parking, and terminal costs following its recent takeover. The airlines are seeking to charge P75 per domestic flight and up to P300 for international flights. The Civil Aeronautics Board (CAB) will review these proposals later this month. 

While Cebu Pacific faces significant cost hikes, it aims to absorb a portion of the burden to maintain demand. For international trips, the airline projects an extra cost of at least P737 per passenger, while for domestic flights, the increase would be around P188 roundtrip. AirAsia Philippines, similarly impacted, is proposing P275 per international flight but also plans to shoulder part of the financial strain to keep airfare competitive. 

NNIC's takeover is part of a P170.6 billion modernization effort, which includes permission to raise fees as outlined in an administrative order. Under the new pricing regime, airlines must deal with soaring costs for landing, takeoff, and terminal operations, which have tripled in some cases. For instance, Cebu Pacific now faces a daily cost increase of P9.3 million, amounting to P3.39 billion annually—43% of its 2023 profit.

The proposed fees, if approved, would be shown separately in booking receipts, ensuring transparency. This comes as part of broader changes at NAIA, including a gradual increase in Passenger Service Charges (PSC) set for 2025. By that time, the PSC for foreign departures will jump by 72%, reaching P950, while domestic flights will see a 95% hike to P390. The overall restructuring of fees is expected to roll out over NNIC’s 15-year concession period, during which the company must remit over 82% of airport revenue (excluding PSC) to the government.