Airline Liquidates After Passenger Numbers Plummet; Flights Cancelled
A prominent airline has entered liquidation, terminating all its commercial flights indefinitely. Royal Air Philippines, operational for over two decades, becomes the first airline to cease operations in 2026.
Flight Cancellations Impact Thousands
On January 4, 2026, Royal Air Philippines announced the cancellation of every scheduled flight. This decision affects approximately 3,000 to 4,000 travelers who booked flights from January to March 2026.
The airline has undertaken the task of processing refunds, stating, “We hope to resume flights at an unspecified date in the future. Thank you for your patience and understanding.” However, it appears doubtful that the airline will return to service soon.
Challenges and Declining Passenger Numbers
Royal Air, owned by the Cambodia-registered Lanmei Group, confronted significant challenges in maintaining its low-cost business model. A decline in its primary customer base, which includes Chinese and Korean tourists, exacerbated the situation.
- International passenger count dropped to 51,800 in the first nine months of 2025.
- Domestic traffic saw a staggering 63% decrease, falling to 38,800.
This downturn followed a brief period of growth in 2023 and 2024, when passenger numbers reached 100,000 and 116,000, respectively.
History of Royal Air Philippines
Royal Air Philippines launched in 2002 as a charter service. It transitioned to a low-cost carrier model in 2018, with its first passenger flight occurring eight years ago between Cebu and Macau.
Based in Manila, the airline, commonly referred to as Royal Air, received its commercial operation license in 2017 and swiftly expanded its route network to include destinations like Cambodia, China, South Korea, Hong Kong, and Taiwan.
Ownership and Background
The airline is controlled by Lanmei Group, also known as the Lancang-Mekong Group, a private entity in Cambodia supported by Chinese capital. The group is led by Li Kun, the former president of Shenzhen Airlines.
With the recent liquidation of Royal Air Philippines, the aviation landscape has experienced significant disruption, leaving many passengers scrambling to find alternative travel arrangements.
