Brace Yourself: New NAIA Terminal Enhancement Fees Coming

Travellers planning to fly from Ninoy Aquino International Airport (NAIA) may soon need to dig a little deeper into their wallets, as major airlines propose new terminal enhancement fees to offset rising costs associated with airport operations. Philippine Airlines (PAL), Cebu Pacific, and AirAsia Philippines have collectively sought approval from the Civil Aeronautics Board (CAB) to implement these fees, which could add up to ₱300 per flight.

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How the proposed NAIA terminal enhancement fees affect travellers

Starting with domestic flights, the proposed terminal enhancement fee is ₱75 each way, resulting in an additional ₱150 for a round trip. For international flights, the fees are set even higher, with Cebu Pacific proposing ₱300 each way, while PAL is likely to follow suit with similar rates. AirAsia Philippines is asking for ₱275 per way on its international routes.

The request for these new fees comes in response to the significant increases in airport service charges that have reportedly doubled or even tripled since the New NAIA Infrastructure Corp. (NNIC) took over operations. NNIC, led by San Miguel Corporation, is currently overseeing a ₱170.6 billion upgrade project at NAIA, which has resulted in higher operational costs.

Cebu Pacific anticipates that the new fees will cost the airline an additional ₱9.3 million daily, translating to a staggering ₱3.39 billion over the course of a year—43% of its profits from 2023. To recover these expenses, the airline estimates that it will need to charge passengers an extra ₱737 on international flights and ₱188 on domestic routes for round trips. However, the airline has stated that it does not intend to pass on the entire cost to travellers, opting to absorb some of the financial burden to keep travel appealing.

AirAsia Philippines is in a similar situation, facing tripled costs for landings and takeoffs at NAIA, but the airline plans to mitigate some of these expenses to maintain demand for its budget flights.

CAB is scheduled to meet later this month to discuss these proposals, which, if approved, will be clearly outlined in booking receipts alongside standard charges like base fares and fuel surcharges. Additionally, travellers should prepare for a further increase in the Passenger Service Charge (PSC) beginning in September 2025. The PSC is set to rise by 72% for international flights (to ₱950) and by 95% for domestic flights (to ₱390).

Also read: Prepare for Your Trip: NAIA Terminal 4 Closure Until February 2024

As travellers navigate these upcoming changes, it’s essential to stay informed about the evolving costs associated with air travel in and out of NAIA. With these new fees potentially on the horizon, travellers may want to adjust their budgets accordingly.

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