While some are hoping for a brighter 2026, the last few months of last year were full of bankruptcies and shutdowns of smaller airlines all over the world.

Icelandic airline Play and Swedish airline Braathens Aviation both shut down operations in bankruptcy within a few weeks of each other last October. In the United Kingdom, regional carriers Eastern Airways and Blue Islands both also fell in abrupt insolvencies that left thousands of travelers stranded and competitors having to offer rescue fares.

In addition, American carriers Verijet, Ravn Alaska, and Spirit Airlines (the latter for the second time) filed for bankruptcy protection during the same time period.

The first airline to cease operations in 2026, China Travel News reported, is Royal Air Philippines, a Manila-based charter and cargo airline more commonly referred to as Royal Air.

Royal Air shuts down, thousands of travelers with tickets affected this winter

While launched in 2002 as a cargo airline, Royal Air received the licensing to run commercial flights in 2017 and flew passengers for the first time in an inaugural flight between Cebu and the Chinese territory of Macao in 2018.

In the same year, it expanded its network to five destinations within the Philippines: Caticlan, Tagbilaran, Puerto Princesa, San Vincente, and Cebu.

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It eventually also expanded to international destinations in Cambodia, China, and Taiwan. Royal Air was the only carrier running a direct flight between Taipei, Taiwan, and the Boracay island commonly visited by Taiwanese tourists.

Before phasing them out, the airline also ran flights to South Korea, Hong Kong, and Vietnam.

As first reported by China Travel News, Royal Air abruptly announced that it was canceling all its commercial flights as of Jan. 4.

Related: Struggling airline files for Chapter 11 bankruptcy

As a result, between 3,000 and 4,000 travelers with tickets booked between now and March 2026 (the furthest ahead one could book with the airline) are now left either immediately stranded or with an invalid ticket for a future travel date.

The carrier has a fleet of three Airbus A320 and one A321 aircraft. As it worked to build a customer base, Royal Air tried to stand out from other local airlines both through its network and by offering its passengers one free checked bag of under 10 kilograms.

Royal Air Philippines suspended all its commercial flights on January 4.

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Royal Air confirms it is working on refunds, hopes to resume flights soon

“Just weeks before the suspension announcement, the airline was still publicly posting recruitment advertisements,” China Travel News reports. “At the same time, complaints on social media about flight delays, last-minute cancellations, and disrupted itineraries involving the carrier continued to build.”

These airlines filed for bankruptcy in 2025:

  • Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 bankruptcy for the second time on August 29,2025.
  • Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations such as New Pacific.
  • Corporate Air: Filed for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale, according to Bondoro.
  • Play Airlines: The Reykjavik-based airline shut down operations and entered involuntary bankruptcy in September 2025.
  • Braathens Airlines:Forced to file for bankruptcy and canceled all flights in September 2025.

The Royal Air website and customercare@flyroyalair.com currently issue a message that the airline is working on providing refunds and hopes to resume flights at an unspecified date in the future.

“Thank you for your patience and understanding,” the Royal Air statement presently reads. “We eagerly anticipate welcoming you aboard soon.”

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