Three Airlines Collapse In One Week Amid Industry Turmoil

In a turbulent week for the aviation industry, three airlines—Royal Air Philippines, Romania’s Legend Airlines, and Scotland-based Ecojet Airlines—have entered liquidation or ceased operations, leaving thousands of passengers stranded and investors rattled. The events, which unfolded in early February 2026, underscore the mounting pressures faced by smaller and start-up carriers as they navigate financial, technological, and regulatory headwinds.

On February 6, 2026, Royal Air Philippines abruptly entered liquidation, cancelling all flights and stranding between 3,000 and 4,000 passengers with bookings stretching from January through March. The Manila-based airline’s website updated with a message to affected travelers: “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.” According to reports cited by BirminghamLive and Philstar, CEO Eduardo Novillas had already signaled trouble weeks earlier, warning a travel agency that the carrier would halt commercial flights by January 4 due to weak demand.

Royal Air Philippines’ sudden collapse highlights the precarious position of niche carriers that lack the scale and financial resilience of larger rivals. As reported by Meyka AI PTY LTD, the airline’s demise has triggered widespread disruption, with passengers scrambling for refunds and alternative travel arrangements. For UK travelers, the loss of Royal Air Philippines means fewer seats on select Asia routes and the likelihood of short-term fare increases. The advice is clear: act fast to secure replacement seats, try card chargeback or Section 75 protections for credit card purchases between £100 and £30,000, and contact ATOL organizers if the booking was part of a protected package. Unused taxes may still be claimable, but cash refunds from an insolvent carrier are unlikely.

Romania’s Legend Airlines, another small regional player, also ceased operations the same week. The shutdown removes capacity on certain Eastern European routes, creating similar headaches for travelers and compounding the sense of instability in the sector. According to industry analysis from Meyka, such exits can cause quick capacity gaps on short-haul and leisure routes. Larger airlines may eventually fill the void, but not immediately—meaning fares can spike, especially on peak dates. Airports and service providers are left to reassign slots, and some thin routes may see service paused or downgraded.

The collapse of these airlines has ripple effects for investors and service providers as well. As Meyka notes, supplier exposure rises when carriers fail: lessors, maintenance providers, caterers, and ground handlers may face delayed receivables. Banks and bondholders are forced to reassess their risk exposure, particularly in a climate of high interest costs and escalating lease rates. The advice to investors is to watch schedule filings, load factors, pricing, and liquidity runway among airlines, airports, and service providers, especially as the summer travel season approaches.

Meanwhile, in Edinburgh, another blow landed for the future of green aviation. On February 5, 2026, a court appointed provisional liquidators to Ecojet Airlines, a start-up founded by green energy entrepreneur Dale Vince in 2023. The company, which had ambitious plans to launch “the world’s first electric airline” and connect UK cities with zero-carbon flights, failed to raise the approximately £20 million required by the UK Civil Aviation Authority to begin operations. According to filings reported by Daily Business and Deadline News, Ecojet had no material assets and never launched commercial flights.

Ecojet’s vision was to start with 19-seat aircraft powered by hydrogen-electric engines—specifically, ZeroAvia’s ZA600—on routes up to 300 miles, eventually expanding to larger planes capable of flying up to 1,000 miles. The start-up’s website emphasized its commitment to zero-carbon flights, but as Vince admitted in a statement, “It’s taking longer than we hoped, to get the technology and regulatory pieces of the puzzle in alignment, and so we’re pausing work at this time. 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.”

Paul Dounis and Mark Harper of Opus Restructuring were appointed as provisional liquidators. Opus explained, “Ecojet was a start-up business and has no material assets. The members have elected to fund the liquidation process to ensure that the company’s employees receive their full statutory entitlements.” TheStreet, writing for a U.S. audience, described the move as the British equivalent of Chapter 7 bankruptcy—a process focused on liquidation rather than restructuring. For creditors, prospects of recovery look slim if there are few assets to sell, and any revived attempt to launch would still require fresh capital and regulatory approval.

Ecojet’s failure comes at a challenging time for small aviation projects seeking to cut emissions. Hydrogen-electric aviation, as the International Air Transport Association explains, aims to replace jet fuel with hydrogen, using fuel cells to generate electricity for electric motors. The approach can eliminate in-flight carbon dioxide emissions, but it faces daunting hurdles: new certification pathways, airport infrastructure upgrades, and, most critically, reliable funding. As Vince put it, “aviation is the last frontier and the hardest” for electrification.

For travelers, the collapse of these airlines means uncertainty and, in some cases, financial loss. The advice from consumer advocates is to keep all booking confirmations, payment proofs, and cancellation notices, and to act quickly on refund or rebooking options. Package holidays with ATOL protection can be refunded or rebooked via the organizer, while travel insurance may cover missed connections or rebooking, depending on policy terms.

For investors and industry watchers, the current wave of airline insolvencies is a stark reminder of the sector’s fragility, especially among smaller, less diversified players. The recommendation is to keep single-airline exposure modest, favor carriers with robust balance sheets and flexible fleets, and diversify across airlines, airports, and travel service providers. Monitoring jet fuel prices, foreign exchange trends, and airport slot reallocations can help spot both risks and opportunities as the year unfolds.

The liquidation of Royal Air Philippines, Legend Airlines, and Ecojet Airlines serves as a cautionary tale for the aviation industry in 2026: thin margins, high financing costs, and technological uncertainty can quickly ground even the most ambitious plans. For travelers and investors alike, vigilance and flexibility are more important than ever as the skies grow a little less crowded—and a lot more unpredictable.