Travelers could see an increase in plane ticket prices before the end of the year as airlines push for a new terminal enhancement fee at Ninoy Aquino International Airport (NAIA). Philippine Airlines (PAL), Cebu Pacific, and AirAsia Philippines have filed proposals with the Civil Aeronautics Board (CAB) to charge additional fees to offset rising operational costs at NAIA, which are expected to double or even triple under new management.
According to a PhilStar report, the proposed fees, amounting to P75 per domestic flight and up to P300 per international trip, would apply per way, potentially adding P150 to round-trip domestic tickets and up to P600 for international flights. Cebu Pacific is pushing for the highest fee of P300 per international trip, while AirAsia Philippines is seeking P275, and PAL is proposing similar amounts.
The fee increase follows the recent takeover of NAIA by New NAIA Infrastructure Corp. (NNIC), tasked with a P170.6-billion upgrade project. This transition has led to substantial hikes in service charges for airlines, affecting landing, takeoff, and parking costs, among others. For Cebu Pacific, these price adjustments are estimated to add P9.3 million in costs per day, translating to P3.39 billion annually, or 43% of the airline’s 2023 profit.
Although airlines are requesting the terminal enhancement fee, they are expected to cover some of the increased costs themselves to maintain travel demand. Should CAB approve the proposals, the fee will be itemized separately on booking receipts, alongside base fares, fuel surcharges, and other standard charges.
The CAB is expected to deliberate on the proposals by the end of the month. Meanwhile, the Passenger Service Charge (PSC) at NAIA is set to increase starting in September 2025 under a revised administrative order.
