MANILA, Feb 5, 2026, 18:12 GMT+8
Royal Air Philippines has gone into liquidation following a sudden halt to all flights on Jan. 4, stranding thousands of passengers without valid tickets, according to travel site Travelling for Business. The shutdown also ended direct service on some niche leisure routes like Taipei to Boracay, the report noted. (Travelling for Business)
Kursiv reported that the Manila-based airline’s halt stranded roughly 3,000 to 4,000 passengers holding bookings from January through March, all seeking refunds and new travel options. The carrier’s website confirmed it was processing refunds but offered no timeline for resuming flights. (Kursiv)
Timing is crucial since smaller carriers, dependent on seasonal tourism, usually hold less cash to weather sudden drops in demand. When services halt abruptly, passengers often find themselves caught between airlines, travel agents, and credit card companies.
Royal Air’s CEO Eduardo Novillas had already signaled weak demand weeks earlier. In a Dec. 22 letter to a travel agency, he warned the carrier would halt commercial flights by Jan. 4, Philstar reported. Novillas pointed to “significantly low” interest from key markets. Meanwhile, Asian Development Bank economist Jules Hugot noted arrivals from China to the Philippines remained well below pre-pandemic figures entering early 2025. Philstar also highlighted how bigger rivals were ramping up fleets and routes during the same timeframe. (Philstar)
Liquidation is the legal procedure that shuts down a company and sells off its assets to settle debts. For passengers, this can turn a simple flight disruption into an extended battle over getting their refunds.
Legend Airlines, a Romanian charter operator, has “gone dormant” following the retirement of two Airbus A340s, according to TheStreet, which cited ch-aviation data. The airline previously operated four A340-300s and leased a pair to Italian low-cost carrier Neos Air. Despite regulatory approval for U.S. charter operations in 2024, those plans never materialized. (TheStreet)
Legend came under scrutiny in late 2023 after French authorities grounded one of its charter flights carrying 303 Indian passengers amid an investigation into suspected human trafficking, Reuters reported. Liliana Bakayoko, a lawyer for the airline, told BFM TV that crew members were free to move and “None has been put in custody.” (Reuters)
The biggest question for Royal Air customers is the refund queue: liquidations often drag on, leaving passengers as unsecured creditors if funds run low. The downside is clear — delayed refunds, pricier replacement tickets, and longer journeys as other airlines hike fares on shared routes.
For now, travellers must rebook as the collapse underscores how quickly smaller operators with limited fleets and narrow markets can vanish when demand drops and costs remain high.
