MANILA, June 4 -- The Civil Aviation Authority of the Philippines (CAAP) on Thursday confirmed that AirAsia Philippines has complied with the directive to settle its financial obligations during the day, subject to ongoing standard reconciliation processes.

Earlier, CAAP said the airline was given until June 6 to settle its dues.

"CAAP acknowledges and appreciates the airline's cooperation and its commitment to addressing its obligations through constructive engagement and coordination with the Authority," it said in a statement.

On Wednesday night, CAAP acknowledged that the settlement of the obligations remains the most practical and preferred course of action.

"Any interruption in airline operations carries significant consequence...