CAAP airport fees to drop starting April 1 amid fuel cost surge

By Ashley Erika O. Jose, Reporter

THE DEPARTMENT of Transportation (DoTr) will implement adjusted airport-related charges, including terminal fees and landing and takeoff fees, for airports operated by the Civil Aviation Authority of the Philippines (CAAP) starting April 1, amid rising fuel prices.

“In order to help passengers and airlines, and to stabilize airfares, we are going to reduce terminal fees as well as landing and takeoff fees,” Transportation Acting Secretary Giovanni Z. Lopez said during a media briefing on Tuesday.

Passenger service charges (PSC), or terminal fees, imposed on departing passengers will be reduced by up to P200 starting April 1 for three months, he said.

CAAP said this will reduce PSC at international airports to P700 from P900 for international flights, while lowering the domestic PSC for flights departing from international airports to the P150-P200 range from the current P350.

CAAP said PSC will be lowered to the P150-P200 range from the current P300 for passengers departing from principal class 1 airports. Those departing from principal class 2 airports will see PSC cut in half to P100 from the current P200, while PSC for those leaving via community airports will be reduced to P50 from P100.

The measure aims to cushion the anticipated rise in airfares in April after the Civil Aeronautics Board (CAB) raised the passenger fuel surcharge to Level 8 for the first half of April, the highest level in two years.

“This will be effective starting April 1, and will be effective for three months after our first assessment,” Mr. Lopez said, noting that the reduction may be extended subject to the agency’s assessment.

The PSC reduction will take effect for three months beginning April 1, regardless of whether jet fuel prices go down, he added.

“We recognize the challenges brought by the ongoing regional tension and its impact on passengers and the aviation industry. CAAP is implementing reductions in passenger service charges and aeronautical fees to provide immediate relief and support, ensuring that air travel remains accessible during these difficult times,” CAAP Director General Raul L. del Rosario said in a separate media release.

According to monitoring by the International Air Transport Association, jet fuel prices climbed 12.6% week on week to $197 per barrel as of March 20. On a yearly basis, jet fuel prices surged by 118%, data from the airline trade association showed.

The DoTr also ordered the reduction of navigation charges, such as landing and takeoff fees, by up to P5,000 for CAAP-run airports.

Landing and takeoff fees are charges levied for the use of airport facilities and services during aircraft landings and takeoffs.

“Under the modified rates, the aeronautical fees, including the landing and takeoff, will be decreased to nearly 50% overall, or as high as approximately P5,000 per landing,” CAAP said.

Based on a CAAP memorandum issued in April 2025, the current landing and takeoff fees are based on the maximum takeoff weight (MTOW) of the aircraft. For international flights, the minimum fee is $260 for an aircraft weighing up to 50,000 kilograms, while for domestic flights, the minimum rate is P54 per 500 kilograms for an aircraft weighing up to 50,000 kilograms.

Earlier this week, local airlines announced reductions in flight frequencies and the temporary suspension of some services.

On Friday, flag carrier Philippine Airlines (PAL) announced the temporary suspension of its flights between Manila and select Middle East destinations, such as Manila-Dubai-Manila, Manila-Doha, and Doha-Manila, until April 30.

“This precautionary measure is being taken considering the security situation affecting parts of the Middle East and the resulting operational uncertainties in certain regional airspace corridors and airport operations,” PAL said.

On Monday, Cebu Pacific said it will recalibrate its network, including reducing flight frequencies and canceling selected routes due to the ongoing Middle East conflict, noting that these changes are driven by the impact of the crisis on global fuel prices.

The airline suspended five routes — Davao-Bangkok, Iloilo-Bangkok, Iloilo-Singapore, Singapore-Iloilo, and Clark-Hanoi-Clark — until October 2026. It also reduced weekly services for selected domestic and international routes from April to October.

The airline’s decision to reduce flight frequencies and suspend some flights may be related to the lack of fuel supply, said Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult.

“But it’s probably more of the higher costs of maintaining these flights which could be served by a reduced frequency. Airlines know their numbers and know if and when the passenger’s existing volume can be carried by less frequencies of flights,” he said.

Energy Secretary Sharon S. Garin said in a separate briefing on Tuesday that airlines have had “few glitches” in orders due to changes in their supplier countries.

“But so far, we have met them and they have assured us that they are okay. I think the issue is on the price, the constraint on the price puts pressure on the operations of the companies,” she said when asked about the possibility of a lack of jet fuel supply.