Royal Air Philippines has gone into liquidation after unexpectedly canceling all flights on January 4, 2026. This effectively ended the airline's operations, leaving thousands of passengers without valid reservations.
The Manila-based airline, owned by Cambodia-registered Lanmei Group, had been struggling financially for months due to a sharp decline in passenger numbers. International traffic fell to about 51,800 passengers in the first nine months of 2025, while domestic traffic was down more than 60 percent year-on-year. The decline came after a brief period of growth in 2023-2024, when the airline carried more than 100,000 passengers per year.
Royal Air was heavily dependent on inbound tourism from China and South Korea, especially to holiday destinations such as Boracay and Palawan. As regional tensions increased and competition from larger Philippine airlines intensified, the company's core market weakened to the point where recovery was deemed unlikely.
What happened?
On January 4, the airline canceled all scheduled flights without warning. Travelers with reservations well into 2026 had their tickets canceled. The company's website now displays only a brief message promising refunds and a hope to resume operations at an unspecified date. However, industry analysts say a restart is highly unlikely given the widespread financial problems.
The company's small fleet, consisting of Airbus A320 and A321 aircraft, has been grounded while the liquidation process begins.
Consequences for travelers
Passengers with Royal Air tickets face several immediate problems:
- All flights are cancelled and rebooking is not offered.
- Refunds may be delayed or not made due to the liquidation.
- Travelers have to book new flights with other companies, often at higher prices at short notice.
- Some routes, including niche leisure routes such as Taipei–Boracay, have lost direct connections and now require longer journeys with stopovers.
Advice for affected passengers
Travelers are advised to contact their credit card company to request a chargeback if the money is not refunded. Those with travel insurance should check whether it covers airline bankruptcies. It is also recommended to book alternative flights as soon as possible, as demand on affected routes is expected to increase.
The collapse of Royal Air Philippines is one of the first airline crashes of 2026 and highlights the continued volatility in regional air traffic and the vulnerability of smaller companies dependent on tourism.
According to travellingforbusiness.co.uk
