A major airline has announced the cancellation of all its commercial flights following a decline into liquidation. Royal Air Philippines, a carrier that has been in operation for over two decades, has officially ceased its operations this year.
Liquidation Announcement
On January 4, Royal Air Philippines stated that it is canceling all its flights. This decision has affected approximately 3,000 to 4,000 travelers, who had booked tickets for travel from January to March 2026. Passengers are now seeking alternative travel arrangements.
Company Statement
The airline’s website reassured customers by stating, “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.” However, it seems unlikely that Royal Air will resume operations in the near future.
Challenges Leading to Liquidation
Royal Air Philippines, which is owned by the Cambodia-registered Lanmei Group, has struggled to maintain its low-cost business model. The airline’s challenges intensified as its core market of tourists from China and Korea diminished.
Passenger Traffic Decline
In the first nine months of 2025, international passenger numbers dropped significantly to 51,800. Domestic traffic suffered an even steeper decline of 63 percent, plummeting to 38,800 passengers. These figures followed a brief growth phase in 2023 and 2024, during which the airline recorded passenger numbers of 100,000 and 116,000 respectively.
History of Royal Air Philippines
- Founded: 2002, initially as a charter service.
- Business Model Change: Transitioned to a low-cost carrier in 2018.
- First Flight: The inaugural passenger flight took place between Cebu and Macau.
- Commercial License: Received in 2017.
- Peak Operations: Served destinations including Cambodia, China, South Korea, Hong Kong, and Taiwan.
Ownership and Background
Royal Air Philippines is part of the Lanmei Group, also known as the Lancang-Mekong Group. This Cambodia-based private enterprise, supported by Chinese civil capital, was founded and is chaired by Li Kun, the former president of Shenzhen Airlines.
The cancellation of all flights signifies a troubling chapter for the airline industry as passenger numbers continue to fall. It remains to be seen how Royal Air Philippines will navigate this challenging transition.
