Philippines’ Royal Air liquidation leaves travelers stranded; Romania’s Legend Airlines halts operations
Royal Air Philippines has entered liquidation following a sudden suspension of flights on January 4, 2026. This unexpected halt has left thousands of travelers stranded without valid tickets, amounting to an estimated 3,000 to 4,000 affected passengers.
Impact on Passengers
The airline’s closure has disrupted travel plans for many. Passengers holding bookings from January through March are now seeking refunds and alternative travel arrangements. While Royal Air’s website indicates that it is processing refunds, it has not provided a specific timeline for when flights may resume.
Background on the Liquidation
Liquidation is a legal process where a company shuts down and sells its assets to settle debts. In the case of Royal Air, this leaves travelers in a challenging position as they attempt to reclaim their funds. Typically, passengers become unsecured creditors during liquidations, which may delay refunds and complicate travel plans.
Factors Leading to the Closure
- Weak Demand: CEO Eduardo Novillas indicated low interest from key markets in a letter dated December 22, 2025.
- Market Trends: Asian Development Bank economist Jules Hugot highlighted that arrivals from China have not returned to pre-pandemic levels.
- Competitive Pressure: Larger airlines have been expanding their fleets and routes, increasing competition during the same period.
Closure of Legend Airlines in Romania
In another significant development, Romania’s Legend Airlines has ceased operations. The airline became dormant following the retirement of two Airbus A340 aircraft. Previously, it operated a total of four A340-300s, with two leased to a low-cost carrier.
Challenges and Investigations
Legend Airlines faced scrutiny in late 2023 after a charter flight was grounded by French authorities during an investigation into alleged human trafficking. Legal representatives for the airline claimed that crew members were not detained.
Conclusion
The situations involving Royal Air Philippines and Legend Airlines highlight the fragility of smaller carriers. With limited resources, these airlines face significant challenges during periods of decreased demand. Travelers are urged to stay informed and explore alternative options for their journey as the landscape continues to evolve.
