A major airline has collapsed into administration, with all flights cancelled.

Royal Air Philippines abruptly announced shortly after Christmas that it was halting all commercial flights, throwing travel plans into disarray for approximately 4,000 passengers who had tickets booked through to March 2026.

The airline's website 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."

Royal Air's CEO Eduardo Novillas attributed the collapse to "significantly low" interest from key markets.

International passenger numbers slipped to 51,800 in 2025, according to Airlines.

This represented a dramatic decline from the 100,000 to 116,000 international passengers the carrier had transported in 2023 and 2024.

Domestic traffic, too, collapsed by 63% to just 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 passengers, "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 update regarding the future of its cargo operations was provided. However, as of 6 February 2026, according to flight tracking service Flightradar24, the airline continues to operate cargo flights.