The first airline of the year has formally ceased operations.

23:04, Tue, Feb 3, 2026 Updated: 00:42, Wed, Feb 4, 2026

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Royal Air Philippines has plunged into liquidation (Image: Getty)

A major airline abruptly cancelled every single commercial flight on its schedule after plunging into liquidation. After more than 20 years of services Royal Air Philippines has become the first carrier to formally cease operations this year.

On January 4, the airline confirmed that it was cancelling all of its commercial flights in a situation that left between 3,000 and 4,000 travellers with tickets booked between January and March 2026 having to seek out alternative travel options. The airline’s website says: “We are working on providing refunds and hope to resume flights at an unspecified date in the future. Thank you for your patience and understanding. We eagerly anticipate welcoming you aboard soon.”

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The airline has cancelled all of its commercial flights (Image: Getty)

It seems Royal Air won't be flying customers for the foreseeable. The airline, which is owned by Cambodia-registered Lanmei Group, has faced mounting challenges in sustaining its low-cost business model as its core market of Chinese and Korean tourists steadily declined.

The airline’s weakening position became evident in the first nine months of 2025, as international passenger numbers slipped to 51,800 and domestic traffic collapsed by 63 percent to 38,800.

This reversal followed a brief expansion in 2023 and 2024, during which passenger numbers rose to 100,000 and 116,000.

Royal Air Philippines launched in 2002 as a charter service before pivoting to a low-cost carrier model in 2018. The airline flew its inaugural passenger flight 8 yearsa ago between Cebu and Macau. 

Based in Manila, the charter and cargo airline—more commonly known as Royal Air—received its license to operate commercial flights in 2017 and rapidly expanded its network.

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At its peak, the airline served several international destinations, including Cambodia, China, South Korea, Hong Kong, and Taiwan. 

Royal Air Philippines is owned by Lanmei Group, also known as the Lancang-Mekong Group, a Cambodia-registered private enterprise backed by Chinese civil capital. The group is founded and chaired by Li Kun, the former president of Shenzhen Airlines.