Carriers worry over airport fees, cost hikes

Airlines are riding high from the liftoff of travel growth in 2024, but are worried that their wings would be clipped by cost spikes this year, such as fee hikes at the country's main gateway.

- ELIJAH FELICE ROSALES

Domestic carriers Philippine Airlines (PAL), Cebu Pacific and AirAsia Philippines expressed concerns that their momentum would be thrown off by price hikes, especially as some of these are unavoidable like the increased charges at the Ninoy Aquino International Airport (NAIA).

On top of this, they are on the lookout for external risks—from foreign exchange to geopolitical tensions—that could trigger jet fuel prices to go up again.

AirAsia Philippines CEO Ricardo Isla said the carrier is waiting for government response to the industry's plea for intervention in NAIA. Travelers are scheduled to pay higher passenger service charges (PSC) at the airport starting September as part of its transfer to private hands.

In 2024, NAIA's operations and maintenance were handed over to the New NAIA Infrastructure Corp., setting up the airport for a 15-year, P170.6-billion rehabilitation. In turn, NNIC is authorized to jack up NAIA fees in tranches to recover investments.