The Civil Aviation Authority of the Philippines (CAAP) has given Philippines AirAsia (Z2, Manila Ninoy Aquino International) until March 28, 2026, to settle PHP833.7 million pesos (USD13.9 million) in outstanding government charges, business outlet InsiderPH has reported.

The regulator issued a final demand on March 23, with a non-extendable five-day deadline. The sum covers unpaid landing and parking fees, air navigation charges, and unremitted domestic passenger service charges collected from travellers.

CAAP confirmed to ch-aviation that the demand letter had been issued, describing it as part of its "regular business processes", but declined to elaborate further, citing data privacy constraints.

The regulator reportedly warned that continued non-compliance could trigger sanctions, including suspension or non-renewal of licences and permits, denial of services, and revocation of access to CAAP facilities. Civil and criminal proceedings may also be pursued to recover the dues, alongside penalties and interest.

The demand follows a series of prior notices, reconciliation meetings, and follow-ups, the report said. CAAP noted that the persistent non-payment is a "serious concern", while indicating it is mindful of potential passenger disruption ahead of the religious holiday period.

Philippines AirAsia previously avoided an operational shutdown in December 2022 after partially settling a PHP1.1 billion (USD19.1 million) liability shortly before a regulatory deadline.

The Filipino low-cost carrier has twenty-four A320-200s, of which nine are currently inactive, according to ch-aviation data.

ch-aviation has contacted the airline for comment.