Major Airline Enters Administration, All Commercial Services Halted
Royal Air Philippines has collapsed into administration, resulting in the immediate cancellation of all its commercial flights. This sudden move has left thousands of passengers stranded and facing significant travel disruptions.
Passenger Impact and Refund Efforts
The airline abruptly announced after Christmas that it was suspending all commercial operations, impacting approximately 4,000 passengers with tickets booked through March 2026. On its website, Royal Air Philippines stated: "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."
Steep Decline in Passenger Numbers
CEO Eduardo Novillas attributed the collapse to "significantly low" interest from key markets. International passenger numbers plummeted to 51,800 in 2025, a sharp drop from the 100,000 to 116,000 carried in 2023 and 2024. Domestic traffic also suffered, collapsing by 63 percent to just 38,800 passengers.
Consequently, the airline confirmed it would "suspend its commercial passenger operations effective 04 January 2026," according to an advisory posted on December 29, 2025.
Industry Analysis and Warnings
Jetsetter Guide warned: "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 affected passengers, "the lesson here is painfully clear," added Jetsetter Guide. "Booking with smaller carriers always carries risk, especially when you're buying tickets months in advance." The guide recommended considering travel insurance that covers airline bankruptcy, particularly for budget carriers.
Ongoing Pressures and Cargo Operations
Industry observers point to rising fuel costs, intense competition, and fluctuating demand as ongoing pressures for smaller carriers like Royal Air Philippines. While no update was provided regarding the continuity of its cargo operations, as of 6 February 2026, flight tracking service Flightradar24 indicated that the airline continues to operate cargo flights.
