It is not known whether the flight service will be resumed in the future.
President Johnson Toribiong said the airline, which had only been in service for four months, cancelled all flights “until further notice.”
The local agent of the airline could not explain the suspension but Toribiong said the local office had already received future bookings.
Pacific Flier started its Koror-Clark flight service in April.
It also flies to Brisbane, Australia and Guam.
The airline operated an Airbus A310-300 and had an operational base in Australia.
It said its goal was to provide an alternative airline on Palau offering cheap charter flights.
Recently, the airline had been cancelling flights. The airline initially flew three times a week to Koror from Clark, in Pampanga, north of Manila, but this was reduced to two times a week.
