Royal Air Philippines Liquidates, Stranding Travelers Seeking Alternatives
Royal Air Philippines has officially entered liquidation, effectively ceasing operations and impacting myriad travelers. On January 4, 2026, the airline unexpectedly canceled all scheduled flights, leaving numerous passengers stranded.
Background of Royal Air Philippines
Based in Manila, Royal Air was owned by Lanmei Group, a company registered in Cambodia. For months, the airline faced declining passenger numbers, culminating in a significant downturn in 2025. International travel figures dropped to approximately 51,800 travelers in the first three quarters, while domestic travel plummeted by over 60% compared to the previous year. This decline followed a brief resurgence in 2023 and 2024, when it successfully transported over 100,000 passengers annually.
Reasons for the Downturn
The airline’s reliance on inbound tourism from China and South Korea, particularly to popular destinations like Boracay and Palawan, further contributed to its struggles. As regional tensions rose and competition from larger Philippine carriers intensified, Royal Air’s market position weakened dramatically, making recovery increasingly unlikely.
Immediate Impact on Travelers
The cancellation of flights on January 4 led to several immediate challenges for travelers:
- All flights were canceled without warning, leaving many with invalid tickets.
- Refund processes may be uncertain or delayed because of the ongoing liquidation.
- Passengers must arrange new travel, often at higher last-minute fares.
- Specific routes, like the niche Taipei to Boracay service, lost direct options, requiring longer journeys.
Action Steps for Affected Passengers
Travelers are encouraged to take the following actions:
- Contact credit card providers to seek chargebacks for canceled flights.
- Review travel insurance policies to check for coverage on airline insolvencies.
- Book alternative flights as soon as possible to avoid inflated prices on popular routes.
Industry Implications
The liquidation of Royal Air Philippines is one of the first airline failures of 2026. It underlines the volatility within regional aviation markets and the heightened risk facing smaller airlines reliant on tourism flows.
