A major airline has entered administration, grounding all flights and leaving thousands of passengers scrambling for refunds and alternative travel arrangements.
Royal Air Philippines confirmed that all of its commercial flights have been cancelled after the company collapsed financially, affecting an estimated 3,000 to 4,000 travellers with bookings between January and March.
The airline’s sudden shutdown has disrupted travel plans for thousands of passengers who had booked flights in the early months of the year. Travellers are now seeking refunds or trying to secure alternative flights with other carriers.
In a statement posted on the airline’s website, Royal Air Philippines said: “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.”
The airline’s chief executive, Eduardo Novillas, had warned weeks earlier that the company was struggling due to weak market demand.
In a letter sent to a travel agency before Christmas, Novillas indicated the carrier would halt commercial flights by 4 January, citing “significantly low” passenger interest from key markets.
Economists have noted that tourism flows from China to the Philippines remain well below pre-pandemic levels, contributing to the airline’s financial difficulties.
Royal Air Philippines, often referred to simply as Royal Air, is owned by the Cambodia-registered Lanmei Group, also known as the Lancang-Mekong Group.
The airline was founded by Li Kun, who now serves as chairman and previously led Shenzhen Airlines.
Originally launched in 2002 as a charter operator, the company shifted towards a low-cost airline model in 2018 after receiving a commercial flight licence the previous year.
At its peak, the airline operated international routes linking the Philippines with destinations such as Cambodia, China, South Korea, Hong Kong and Taiwan.
The collapse of Royal Air Philippines comes amid continued turbulence in the aviation industry.
The news follows the recent liquidation of Ecojet Airlines, a UK-based start-up that had aimed to become the world’s first all-electric airline.
Founded in 2023 by Dale Vince, Ecojet had ambitious plans to launch routes across mainland Europe, including a service between Edinburgh and Southampton.
At the time of the airline’s launch, Vince said: “This is a vital frontier in the move to net zero, green living, whatever you choose to call it – and it’s absolutely doable. It’s a matter of when, not if.”
However, the company later entered voluntary liquidation, with restructuring specialists appointed to oversee the process.
The closures highlight the financial pressures facing airlines worldwide, particularly those operating smaller fleets or relying heavily on international tourism markets.