Iron-substituted hexagonal mesoposours aluminiphosphate (FeHMA) molecular sieves oxidize cycloalkanes into cycloalkanols and cycloalkanones with excellent yield in the presence of molecular oxygen or air under mild reaction conditions. The catalyst showed higher activity as compared to mesoporous FeMCM-41 as well as microporous FeS-1 and FeAPO-5 molecular sieves, and that FeHMA can be recycled without much loss in activity.