Tony Fernandes, founder of the airline, said the agreement includes giving one of its trademark red planes a new paint job, likely with Pacquiao's famous mug, confirming a report the Biz Buzz column in Wednesday's issue of the Philippine Daily Inquirer.
Abroad, AirAsia has tied up with celebrities like American musician Taylor Swift on its aircraft livery.
"We try to celebrate heroes, guys or girls who come from nowhere and make people's dreams come true," Fernandes told local media before his flight to General Santos on Wednesday.
"So when this opportunity [with Pacquiao] came, it was too good an opportunity to miss," he added.