More than 3,000 passengers have been left in limbo after Royal Air Philippines was compelled to cancel all of its commercial services.

Royal Air Philippines CEO Eduardo Novillas had already flagged weak demand weeks earlier, warning the carrier would suspend commercial operations by January 4 in a letter to a travel agency ahead of Christmas, according to Philstar.

He highlighted "significantly low" interest from key markets. Asian Development Bank economist Jules Hugot observed that arrivals from China to the Philippines remained well beneath pre Covid pandemic levels heading into early 2025.

The airline's website states: "We are working on providing refunds and hope to resume flights at an unspecified date in the future. Thank you for your patience and understanding. We eagerly anticipate welcoming you aboard soon."

Royal Air Philippines, commonly known simply as Royal Air, is owned by the Cambodia-registered Lanmei Group, also known as the Lancang-Mekong Group. The airline is supported by Chinese investment and was established by Li Kun, the former president of Shenzhen Airlines, who now serves as its chairman, Express reports. Initially established in 2002 as a charter operator, Royal Air pivoted towards a low-cost carrier model in 2018 following receipt of its commercial flight licence the year before.

Its inaugural passenger service departed eight years ago, and during its height, the carrier flew to multiple international destinations, including Cambodia, China, South Korea, Hong Kong, and Taiwan.

The update comes just weeks after a British airline collapsed into liquidation amid a reported attempt to secure £20million in funding.

Scottish company Ecojet Airlines had been promoted as the world's first all-electric airline and was established in 2023 by entrepreneur Dale Vince, a prominent Labour donor and owner of Forest Green Rovers football club.

The airline had ambitious plans for long-haul services and routes across mainland Europe, with an initial route from Edinburgh to Southampton mapped out. However, a petition was submitted to Edinburgh Sheriff Court for the company to be wound up and joint interim liquidators appointed, documents from the end of January show.

At the time of launch, Mr Vince stated: "This is a vital frontier in the move to net zero, green living, whatever you choose to call it - and it's absolutely doable. It's a matter of when, not if."

The Herald reports that Paul Dounis and Mark Harper, of Opus Restructuring, were appointed as provisional liquidators. Opus confirmed the action followed a "voluntary liquidation initiated by the company's board".