Philippine air passengers will likely face higher ticket prices in 2025 as the Civil Aeronautics Board (CAB) considers approving a new terminal enhancement fee proposed by airlines. The fee is intended to offset rising costs associated with the Ninoy Aquino International Airport (NAIA), following increased landing, takeoff, and other operational charges set by its private operator, New NAIA Infra Corp. (NNIC).
Airlines Seek Approval for Added Fees
Transportation Secretary Jaime J. Bautista confirmed that the CAB is currently deliberating on allowing airlines to pass these additional costs onto passengers. Local carriers, including Philippine Airlines, Cebu Pacific, and Philippines AirAsia, are seeking to impose a terminal enhancement fee of PHP 150 for domestic roundtrip flights and PHP 300 per way for international flights.
The CAB Board is expected to finalize its decision by the end of the year, with new fees potentially impacting ticket prices as early as January 2025. Bautista also mentioned that one option under consideration is integrating the terminal fee directly into the base fare, which would streamline costs for passengers while sparing them from seeing multiple add-ons.
Potential Confusion for Passengers
While the Department of Transportation (DoTr) does not oppose integrating the fee into the base fare, Nigel Paul C. Villarete, a senior adviser at Libra Konsult, Inc., warns that this approach could increase confusion among passengers. Villarete argues that consolidating fees into the base fare would simplify ticketing but acknowledges that it might obscure the transparency of individual charges.
“If airlines opt to bundle these fees, it could reduce confusion, but also makes the fare appear higher,” Villarete said. He also noted that foreign carriers using NAIA may seek similar relief from the CAB if the new charges are approved.
According to Bautista, airlines can adjust their fares based on demand, particularly during peak seasons. “The pricing structure relies on revenue management, allowing airlines flexibility without CAB intervention,” he added.
With the CAB’s decision expected soon, travelers could see steeper airfares in 2025, impacting both domestic and international flights as carriers grapple with increasing operational expenses at NAIA.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.