Royal Air Philippines liquidation: cancellations, refunds, and what travellers can do

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Royal Air Philippines liquidation has become a fast-moving travel story because it mixes two things that instantly spark panic: flight cancellations and uncertainty about refunds. As the term started trending, many travellers searched for what exactly happened, whether the airline is fully shut down, and what steps passengers should take next if they had bookings for early 2026.

Here’s a clear breakdown of what multiple reports say, what the airline’s background is, and what affected customers can realistically do while official timelines and insolvency proceedings play out.

Airbus A321 aircraft (illustrative photo, Wikimedia Commons)

Context

Royal Air Philippines (also known as Royal Air Charter Service, Inc.) is a Philippine-registered airline that began as a charter operator and later expanded into scheduled passenger operations. According to Royal Air Philippines’ Wikipedia profile, the company was founded in 2002 and commenced operations under the Royal Air Philippines brand in 2018, with Clark International Airport listed as a base and Lanmei Group cited as the parent company.

The recent wave of attention comes from reports that the airline cancelled flights and entered liquidation after a sudden operational stop around early January 2026. A travel-industry report published by Travelling For Business says the airline “entered liquidation after abruptly cancelling all flights on 4 January 2026,” describing the impact on passengers and noting that the airline’s website displayed a short message about refunds and hoped-for resumption. Source: Travelling For Business report.

The Mirror also reported that Royal Air Philippines “grounded its entire fleet” after entering liquidation, stating that between roughly 3,000 and 4,000 passengers with reservations from January through March 2026 were affected, and quoting an airline website message about working to provide refunds. Source: The Mirror coverage.

One key nuance: some references suggest the airline’s cargo activity may not be identical to its passenger operations. Wikipedia notes an announcement (late December 2025) about discontinuing scheduled passenger flights effective 4 January 2026, while also noting a flight-tracking reference indicating cargo flights continued as of late January 2026. That distinction matters because headlines can read like “airline collapses” even when parts of the operation might still exist in some form — but for travellers with passenger tickets, the practical effect is still the same: cancelled flights and a scramble for alternatives.

Reactions

Online reaction to airline-liquidation stories is predictably intense, and Royal Air’s case is no exception. The most common reactions fall into a few patterns:

  • Immediate fear about refunds: travellers worry they’ll be stuck because liquidation can freeze or slow payments. People ask whether they should wait for the airline, contact their bank, or file with insurance.
  • Confusion about where they booked: some passengers booked directly with the airline, while others used online travel agencies (OTAs). That changes who you contact first and what documentation you’ll need.
  • Route-specific frustration: niche leisure routes (or limited-frequency routes) can become expensive overnight when one carrier drops out, forcing last-minute changes and multi-stop itineraries.

In practical terms, liquidation is exactly the scenario where a “wait and see” approach can cost money. Prices rise quickly after cancellations, and hotel/holiday plans often hinge on arriving on a specific day. That’s why the reaction online rapidly moves from “is it true?” to “what do I do right now?”

Based on the public guidance in reports like Travelling For Business, the most repeated advice is a three-step hierarchy:

  1. Preserve your evidence: emails, ticket numbers, receipts, and screenshots of any cancellation messages.
  2. Try the straightforward refund channel (airline or agency) — but don’t wait indefinitely.
  3. Escalate via chargeback (credit card) or travel insurance if refunds stall.

Future Outlook

What happens next depends on the exact legal path of the liquidation and whether any part of the airline’s operation (including cargo) continues under restructuring or asset sale. For passengers, however, the “future outlook” is less about corporate recovery and more about consumer protection outcomes:

  • Refund timelines may be slow, especially if claims must be processed through an insolvency administrator. Even when an airline intends to refund, cash flow constraints can delay payments.
  • Chargebacks are often time-limited. Travellers should check their card network’s deadlines (which vary) rather than assuming they can file months later.
  • More rerouting by competitors is likely. When one carrier exits routes, other airlines may add capacity — but not always immediately, and not always at the same price points.

If you were affected, the safest approach is to (1) lock in an alternative flight if your trip is still happening, (2) start the refund process promptly, and (3) prepare to file a chargeback or insurance claim if you hit silence or long delays. This is also a reminder to consider booking travel with payment methods that give you dispute options and to read travel insurance terms regarding “airline insolvency” coverage.

Sources: Travelling For Business; The Mirror; Royal Air Philippines (Wikipedia). Image: Wikimedia Commons.

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