Major airline plunges into liquidation as ticket sales collapse – all flights cancelled | World | News
A major airline suddenly canceled all commercial flights on its schedule. is entering the liquidation process. Royal Air Philippines became the first carrier to officially cease operations this year after more than 20 years of service.
on January 4 airline It confirmed it had canceled all its commercial flights in a situation where 3,000 to 4,000 passengers who booked tickets between January and March 2026 were forced to seek alternative travel options. The airline’s website states: “We are working to provide a refund and hope to resume flights at an undetermined date in the future. Thank you for your patience and understanding. We look forward to welcoming you on board soon.”
It looks like Royal Air will not be flying customers for the foreseeable future. The airline, owned by Cambodia-registered Lanmei Group, has faced increasing challenges in sustaining its low-cost business model as its core market of Chinese and Korean tourists has steadily declined.
The airline’s weakened position was evident as international passenger numbers fell to 51,800 in the first nine months of 2025 and domestic traffic dropped 63 percent to 38,800.
This reversal followed a brief expansion in 2023 and 2024, when passenger numbers rose to 100,000 and 116,000.
Royal Air Philippines started operations as a charter service in 2002 before switching to a low-cost carrier model in 2018. The airline operated its first passenger flight between Cebu and Macau 8 years ago.
Headquartered in Manila, the charter and cargo airline, more commonly known as Royal Air, was licensed to operate commercial flights in 2017 and has rapidly expanded its network.
At its peak, the airline served many international destinations, including Cambodia, China, South Korea, Hong Kong and Taiwan.
Royal Air Philippines is owned by the Lanmei Group, also known as the Lancang-Mekong Group, a Cambodia-registered private enterprise backed by Chinese civilian capital. The group was founded and led by Li Kun, former chairman of Shenzhen Airlines.
