A major airline has gone into administration – with all flights grounded. Royal Air Philippines has suspended all commercial services.
Royal Air Philippines suddenly announced after Christmas that it was halting all commercial operations, throwing travel plans into chaos for approximately 4,000 passengers holding tickets through to March 2026.
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.”
Royal Air’s CEO Eduardo Novillas cautioned the collapse follows “significantly low” interest from key markets.
International passenger figures dropped to 51,800 in 2025.
It represented a dramatic decline from the 100,000 to 116,000 international passengers the carrier transported in 2023 and 2024.
Domestic traffic, meanwhile, plummeted by 63 percent to merely 38,800 passengers. Consequently, the airline’s website confirmed it would “suspend its commercial passenger operations effective 04 January 2026,” according to an advisory posted December 29, 2025.
Jetsetter Guide cautioned: “The collapse of Royal Air leaves a gap in the Philippine aviation market, though it’s unclear whether competitors will rush to fill those routes or if they’ll determine the demand just wasn’t there to begin with.” For travellers, “the lesson here is painfully clear,” warned Jetsetter Guide, adding: “Booking with smaller carriers always carries risk, especially when you’re buying tickets months in advance.
“Travel insurance that covers airline bankruptcy is worth considering, particularly if you’re flying a budget carrier you haven’t heard much about. Industry observers point to rising fuel costs, intense competition, and fluctuating demand as ongoing pressures for smaller carriers like Royal Air.”
No information was provided regarding the future of its cargo operations. However, as of 6 February 2026, flight tracking service Flightradar24 confirms the airline is still operating cargo flights.
