MANILA, Philippines — Royal Air Philippines (RW) is set to stop all commercial passenger operations early next year. The Philippine-registered airline, which began as a charter service in 2002 and transitioned to budget commercial flights in 2018, is discontinuing its passenger routes due to financial and operational challenges. "We will be suspending our commercial passenger operations effective January 4, 2026, because of compounded reasons affecting our business," Royal Air Philippines said in a letter dated December 22, 2025, addressed to its general sales agent in Taiwan, Juichi International Travel Co. Ltd. Royal Air has faced a challenging operating environment where factors like rising fuel costs, intense competition on domestic routes, and fluctuating travel demand put pressure on the airline’s profitability. The airline cited “operational adjustments” for suspending its key Taipei-Boracay (Caticlan) route, which served as the only nonstop connection between Taiwan and the popular destination. Booking availability on the airline's website terminates after January 3, 2026 for both domestic and international routes. The low-cost airline operates its international flights from Ninoy Aquino International Airport Terminal 1 and its domestic flights from Terminal 2.