In a shocking turn of events, Royal Air Philippines and Dove Airlines have collapsed within days of each other, stranding thousands of passengers and causing widespread disruption.
On January 4, 2026, Royal Air Philippines canceled all flights, while Dove Airlines entered voluntary liquidation on January 5. The aviation industry is grappling with the fallout, as small carriers face the consequences of years of financial struggle.
A History of Losses: The Root of the Collapse
Both airlines faced significant financial challenges for years. Royal Air Philippines, founded in 2002 and launching commercial operations in 2018, struggled to manage its expanded regional operations, while Dove Airlines grappled with mounting debts and aircraft repossessions.
Their failures highlight the challenges smaller airlines face in a competitive market with rising costs and limited revenue growth.
Thousands of Passengers Stranded
Around 3,000 to 4,000 travelers are now stranded due to Royal Air’s sudden cancellation of all flights. With bookings through March 2026, these passengers face uncertainty and are scrambling for alternative flights, many of which are more expensive.
Royal Air has yet to issue refunds, leaving many travelers out of pocket.
Charter Operators Expected to Feel the Strain
As thousands of passengers look for new flights, regional charter operators across Asia are expected to face increased demand.
With Royal Air Philippines halting operations, other carriers may need to accommodate displaced passengers, potentially straining capacity and affecting ticket prices in the region.
Alternative Booking Options for Stranded Passengers
Larger carriers operating in the region may offer rebooking assistance to stranded passengers, though capacity to handle the volume of rebookings while maintaining regular schedules remains uncertain.
Passengers are advised to contact their travel agents or booking platforms for alternative arrangements.
Impact on Cargo Operations
Royal Air Philippines operated cargo services that supported regional trade. The airline’s closure may affect businesses that relied on its cargo capacity, particularly for time-sensitive shipments.
The extent of the disruption will depend on how quickly alternative cargo carriers can fill the gap.
Job Losses Across Two Countries
The shutdowns have resulted in job losses. In the Philippines, Royal Air’s employees, including pilots and ground crew, face immediate unemployment.
Dove Airlines had ceased operations in 2022 when it lost its last aircraft to creditors, and the 2026 liquidation formally ends the company’s nearly 20-year presence in Indian aviation.
Regulatory Oversight of Small Carriers
Both the Civil Aviation Authority of the Philippines and India’s Directorate General of Civil Aviation oversee their respective aviation sectors.
These airline failures add to ongoing discussions about the financial viability of small regional carriers and the regulatory frameworks governing them.
The Cost of Regional Aviation
The collapse of two regional carriers highlights the economic challenges in Asian aviation. Passengers forced to rebook are facing potential price increases, while the loss of cargo capacity may affect shipping costs.
The reduced competition in some routes could impact the affordability of regional air travel.
Airport Operations Continue
Manila’s Ninoy Aquino International Airport and airports previously served by Royal Air continue normal operations.
Aviation infrastructure is designed to accommodate carrier changes, and airports typically reassign gates and slots as needed to maintain service continuity.
Tourism Destinations Face Uncertainty
Destinations that were served by Royal Air Philippines, including the popular Taipei-Boracay route, may see reduced connectivity.
The tourism industry in affected areas could experience short-term disruption until other carriers establish service or expand existing routes.
Aircraft Creditors Step In
Creditors of Dove Airlines are pursuing asset recovery following the airline’s liquidation, with a claims deadline set for February 4, 2026.
Liquidator Pranab Kumar Chakrabarty will oversee the process. Royal Air’s fleet status remains unclear as the airline navigates its financial situation.
Passengers Increasingly Cautious About Small Carriers
Following these airline failures, travelers may reconsider booking with smaller regional carriers, potentially favoring larger, more established airlines.
This trend could accelerate consolidation in the regional aviation market as passengers prioritize reliability.
Travel Insurance Gains Importance
With Royal Air and Dove Airlines no longer operational, affected passengers are discovering the importance of comprehensive travel insurance.
Coverage for airline insolvency, flight cancellations, and rebooking costs is becoming a more essential consideration for travelers booking with smaller carriers.
Questions About the Future of Small Carriers
The collapse of two airlines in consecutive days has sparked debate about the viability of small regional carriers.
Aviation analysts note that smaller airlines often struggle with thin profit margins, making them vulnerable to economic shocks, increased fuel costs, and competitive pressures from larger carriers.
Liquidation Process Proceeds
As Dove Airlines enters liquidation under India’s Insolvency and Bankruptcy Code, the formal wind-down process will determine creditor recoveries and finalize the company’s closure.
The airline had been dormant since 2022 when it lost its last aircraft, making the 2026 liquidation a legal formality rather than an operational shutdown.
Regional Aviation Sector Under Scrutiny
The Asia-Pacific aviation sector continues to evolve, with these recent failures highlighting the financial pressures facing smaller carriers.
The region’s aviation landscape may see continued consolidation as larger airlines expand their networks and smaller operators face ongoing viability challenges.
Travelers Must Act Quickly to Secure Rebooking
Passengers stranded by Royal Air Philippines are urged to act quickly to secure alternative bookings.
Travel agencies, booking platforms, and credit card companies may offer assistance depending on how tickets were purchased. Travelers should also review their insurance coverage and payment protection options.
Market Consolidation Likely to Continue
As smaller carriers exit the market, larger airlines may expand into routes left vacant by failing competitors.
This could lead to further consolidation in the Asia-Pacific region, potentially affecting route availability, service frequency, and pricing in regional markets.
A Wake-Up Call for the Aviation Sector
The consecutive collapses of Royal Air Philippines and Dove Airlines serve as a stark reminder of the volatility facing small carriers in Asia.
As the industry continues to face economic headwinds, stakeholders are emphasizing the need for stronger financial foundations and sustainable business models to prevent further failures.
Sources:
“24-year-old airline cancels all flights, passengers stranded.” The Street, 5 Jan 2026.
“Chinese-backed Royal Air Philippines to suspend passenger flights.” China Travel News, 4 Jan 2026.
“Royal Air Philippines ends direct flights between Taipei and Boracay.” Taiwan News, 23 Dec 2025.
“India’s Dove Airlines enters voluntary liquidation.” ch-aviation, 12 Jan 2026.