AIRASIA PHILIPPINES said it is confident of a rebound in the latter half of the year, but noted that this will depend on how prolonged the ongoing conflict in the Middle East will be.
“We are still confident that we will be able to rebound in the latter half of the year, but again, it will depend on how long or how prolonged this war is going to be,” AirAsia Philippines President and General Manager Anna Victoria M. Lu told reporters on the sidelines of the Tourism Congress National Conference on Wednesday.
The low-cost carrier said it plans to leverage its international network to offset the impact of rising fuel costs on demand.
Ms. Lu said the airline is focusing on strengthening its international network to support both inbound and outbound tourism.
For the first quarter, AirAsia Philippines said passenger traffic rose by 14% compared with the same period in 2025.
The airline earlier said it expects growth this year despite carrying 5.6 million passengers in 2025, below its seven-million target, according to Civil Aeronautics Board (CAB) data.
Ms. Lu said the airline has secured sufficient fuel supply to sustain operations until June, noting that supply depends on its regional network.
AirAsia Philippines also said it expects improved operations and route expansion following the completion of AirAsia X Berhad’s acquisition of AirAsia Berhad and AirAsia Aviation Group Ltd. from Capital A Bhd.
The consolidation brings all AirAsia-branded airlines under a single platform, the AirAsia Group, while Capital A will retain its non-aviation businesses.
Ms. Lu said the airline is also looking to expand connectivity through its Cebu hub by redirecting demand to other Asian destinations.
“People might now want to travel to Europe right now but they might want to travel to other Asian destinations,” she said.
The airline last month expressed support for proposals by the Department of Transportation to explore measures that could ease rising operating costs, including a possible reduction in landing and takeoff fees.
Ms. Lu said airlines may need some form of government relief to help manage higher operating costs.
AirAsia Philippines said it is studying the possibility of reviving its proposal to collect terminal enhancement fees amid rising costs linked to the Middle East conflict.
The airline is also in discussions with the Civil Aviation Authority of the Philippines (CAAP) to settle outstanding obligations.
“We’re in discussions with CAAP. But that one, we prefer to keep between the two of us. But rest assured, we are compliant with our obligations,” Ms. Lu said.
In March, CAAP said it had ordered AirAsia Philippines to settle unpaid obligations totaling P833.66 million, including airport fees and unremitted passenger service charges.
CAAP said the obligations stem from unpaid navigation charges, landing and parking fees, passenger service charges, and other airport-related fees, including amounts collected for expired and unutilized tickets held in trust for the regulator. — Ashley Erika O. Jose
