Royal Air Philippines Cancels all Flights after Entering Liquidation

Royal Air Philippines has abruptly cancelled all scheduled commercial flights after entering liquidation, becoming the first airline to formally cease operations in 2026.

The Manila-based carrier confirmed on January 4 that it had suspended its entire flight schedule, leaving an estimated 3,000 to 4,000 passengers with bookings between January and March seeking alternative travel arrangements. In a statement on its website, the airline said it was working on refunds but gave no timeline for a possible return to service.

Founded in 2002 as a charter operator, Royal Air Philippines transitioned to a low-cost carrier model in 2018 and expanded rapidly across Asia. At its peak, it served destinations including China, South Korea, Hong Kong, Taiwan and Cambodia.

The airline, owned by Cambodia-registered Lanmei Group, has struggled in recent years as demand from Chinese and South Korean tourists weakened. Passenger numbers fell sharply in 2025, with domestic traffic down 63% and international passengers dropping to just over 51,000.

Lanmei Group is led by Li Kun, a former president of Shenzhen Airlines. Analysts say Royal Air’s collapse highlights the mounting pressure on smaller Asian carriers facing rising costs and softer regional travel demand.

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