Royal Air Philippines has entered liquidation after abruptly cancelling all flights on 4 January 2026, bringing an immediate end to its operations and leaving thousands of passengers without valid bookings.
The airline, based in Manila and owned by the Cambodia‑registered Lanmei Group, had been struggling for months as passenger numbers fell sharply. International traffic dropped to around 51,800 travellers in the first nine months of 2025, while domestic numbers fell by more than 60% compared with the previous year. The downturn followed a brief period of growth in 2023 and 2024, when the carrier carried more than 100,000 passengers annually.
Royal Air relied heavily on inbound tourism from China and South Korea, particularly to resort destinations such as Boracay and Palawan. As regional tensions increased and competition from larger Philippine carriers intensified, the airline’s core market weakened to the point where recovery became unlikely.
What happened?
On 4 January, the airline cancelled all scheduled flights without warning. Travellers with bookings through early 2026 suddenly found their tickets void, and the airline’s website now displays only a short message promising refunds and expressing hope of resuming operations at an unspecified future date. Industry observers say a restart is improbable given the scale of the financial difficulties.
The airline’s small fleet, which included Airbus A320 and A321 aircraft, has been grounded while liquidation proceedings begin.
What this means for travellers
Passengers holding Royal Air tickets face several immediate challenges:
- All flights are cancelled, with no rebooking options available.
- Refunds may be delayed or uncertain due to the liquidation process.
- Travellers must secure new flights with other airlines, often at higher last‑minute prices.
- Some routes — including niche leisure services such as Taipei to Boracay — have lost direct connectivity, forcing travellers onto longer, multi‑stop journeys.
What affected passengers should do
Travellers are advised to contact their credit card provider to request a chargeback if refunds do not materialise. Those with travel insurance should check whether their policy covers airline insolvency. Rebooking alternative flights as soon as possible is recommended, as demand on overlapping routes is expected to rise.
Royal Air Philippines’ collapse marks one of the first airline failures of 2026, highlighting the continued volatility in regional aviation and the vulnerability of smaller carriers dependent on tourism flows.