Royal Air Philippines Liquidates, Stranding Travelers in Search of Alternatives
Royal Air Philippines has officially liquidated, marking a significant disruption in the airline industry. On January 4, 2026, all scheduled flights were abruptly canceled, stranding countless travelers worldwide.
Background of Royal Air Philippines
Founded in Manila, Royal Air Philippines was owned by Lanmei Group, based in Cambodia. The airline struggled with declining passenger counts for several months, with a dramatic drop in 2025. International travel figures fell to around 51,800 travelers in the first three quarters, while domestic travel tumbled by over 60% compared to the previous year. This downturn followed a brief recovery in 2023 and 2024, when the airline handled over 100,000 passengers annually.
Reasons for the Downturn
Several factors contributed to Royal Air’s struggles:
- The airline’s heavy dependence on inbound tourism from China and South Korea.
- Growing regional tensions impacting travel to popular destinations like Boracay and Palawan.
- Increased competition from larger Philippine carriers.
These issues severely weakened Royal Air’s market position, making recovery increasingly improbable.
Immediate Impact on Travelers
The sudden flight cancellations on January 4 resulted in various challenges for affected travelers:
- All flights were canceled with little or no prior notice, rendering many tickets invalid.
- Refund processes are anticipated to be complicated and delayed due to the airline’s liquidation.
- Travelers must book alternative flights, often at inflated last-minute fares.
- Key routes, such as the Taipei to Boracay service, lost direct options, increasing travel time.
Action Steps for Affected Passengers
Passengers stranded by Royal Air’s liquidation should consider the following steps:
- Contact credit card companies to initiate chargebacks for canceled flights.
- Review travel insurance policies for coverage related to airline insolvencies.
- Book new flights as soon as possible to avoid rising fares on popular routes.
Industry Implications
Royal Air Philippines’s liquidation represents one of the first airline failures of 2026. It highlights the volatility present in regional aviation markets and the risks smaller airlines face, especially those heavily relying on tourism.
Travelers and industry observers alike are watching closely as the situation unfolds, with broader implications for the travel market and airline operations in the coming months.
