Asia Responds to Middle East Crisis with Mid-Season Airline Capacity Changes

Asia Responds to Middle East Crisis with Mid-Season Airline Capacity Changes

Asia's scheduled international capacity for May to October 2026 has shifted and evolved. In this analysis, we explore how airlines have responded to world events by adjusting their schedules.

This analysis tracks the percentage change between airline capacity filed firstly in mid-April and then again at the end of May, for the months May to October 2026 (the end of the summer season). This is then compared to the same data for 2025, by region.  This helps us understand the extent to which capacity changes at this point differ from what happened last year.

Asian region international capacity changes between mid-April and end May, by month
% change in scheduled seats vs prior season — 2026 vs 2025
May
June
July
August
September
October
Source: OAG Schedules Data 2025–2026

 

Looking back to 2025, mid-season changes were minimal, with capacity fluctuating by around 1% each month at this point.    

2026 has seen greater fluctuations with above-average reductions taking place from May to September, undoubtedly as a result of the crisis in the Middle East and the associated increase in operating costs for airlines. South Asia and South East Asia regions are most impacted, with May reductions averaging around -6.7% and June's around -10%.


South East Asia
International capacity
2025
2026 mid April
2026 end May
Source: OAG Schedules Data 2025–2026

 

South East Asia's International Capacity:
  • In the six weeks between mid-April and late-May, 5.2 million seats (4.8% of the season’s capacity) were cut from South East Asia's schedule for May to October.

  • At the start of the 2026 summer season, international capacity had been expected to reach 109 million seats, representing 4.6% growth compared to the same period last year.

  • With the recent capacity changes, it is now expected to total 103.9 million seats, which is 0.4% below 2025 (assuming no further capacity reductions). 

  • Over 80% of those reductions (4.2 million seats) are between May and July.

  • The countries seeing the largest reductions are Thailand and Malaysia, with over 1 million fewer seats each.

South East Asia
Summer season capacity
13-Apr-26
01-Jun-26
Source: OAG Schedules Data 2026

 

Southeast Asia: capacity reduction by country, May–Jul 2026
Net change in scheduled seats (domestic + international), mid-April vs end-May filing
Source: OAG Schedules Data 2026

 

What is interesting is that the bulk of these capacity reductions from South East Asia are for travel within Asia, reflecting perhaps the impact of the crisis in the Middle East on both fuel prices and the cost of living.  

South East Asia capacity reductions by region
May–Jul 26
Source: OAG Schedules Data 2026

 

In the last six weeks, 1.7 million seats to destinations within South East Asia have been removed from airline schedules, and a further 1.4 million on routes between South East Asia and North East Asia.

Country pairs most affected include:

  • Indonesia – Malaysia

  • Malaysia – Singapore

  • China – Malaysia

  • China  - Thailand
     

Fares across most of the main markets are up by between 5-10% on average, reflecting the drop in capacity.

Outbound one way fares – International
$ Outbound one way fares, International
Country Jun 26 vs 25 Jul 26 vs 25 Aug 26 vs 25
Thailand 8% 6% 4%
Malaysia 11% 9% 5%
Viet Nam 5% 3% 5%
Singapore 10% 6% 8%
Philippines 3% 2% 4%
Indonesia -1% -2% -4%
Source: OAG Fares Data 2025–2026

 

At a time when this part of the world had finally shaken off the lasting impacts of the global pandemic in the early 2020s, and was seeing growth in international markets both within and beyond South East Asia, this latest crisis looks set to create continued uncertainty for some time to come.

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