Southeast Asia aviation market briefing

Overall capacity in SE Asia increased by 1.2% vs last year to 50.9 million seats.

Domestic capacity increased by 0.6% and represents 43% of the market.

International capacity increased by 1.8% to 28.8m seats and represents 57% market share.

Mainline carriers now hold 56% of Southeast Asian capacity with 28.3m seats, growing by 5.5% vs October 2025. Low cost carriers contracted by 3.7% to 22.6m seats, reducing their share from 47% to 44% year on year.

Indonesia remains the largest SE Asia market with 10.9m seats, an increase of 4.7% vs October 25.

Thailand is the second largest market in SE Asia with 7.4m seats, a 1.7% reduction vs last year (125,800 fewer seats). Viet Nam is the third largest market, growing by 10.6% to 6.5m seats.

Capacity reduced in Malaysia, the Philippines and Cambodia with 470,200, 170,300 and 50,600 fewer seats respectively.

Indonesia is the largest domestic market in SE Asia, with 8.8m seats in October 26, an increase of 5.1% in capacity (426,900 additional seats).

Domestic capacity also increased in Viet Nam by 13.8% (481,600 additional seats) compared to October 25 to 4m seats.

Volume wise domestic capacity in Malaysia declined most, by 586,100 seats in October 26 to 2.4m seats.

AirAsia is the busiest airline with 2.5m seats, despite a reduction of 15% (435,900 fewer seats) vs last year. This reflects the cost issues faced by the carrier as outlined in OAG's recent blog about the airline.

Singapore Changi remains the largest airport in the region, with 3.7m seats. This represents a 2.7% increase in capacity compared to last year. Bangkok, Thailand, is the second busiest airport, with capacity of 3.3m an increase of 3.9% vs October 25.

Capacity at Bangkok Don Mueang, Kuala Lumpur and Manila reduced by 11.2%, 5.2% and 1.6%, with 197,200, 175,800 and 43,300 fewer seats respectively.

Capacity increased at the fastest rate of 14.9% (250,600 additional seats) vs last year in Hanoi, Vietnam.

SE Asia capacity to the rest of Asia Pacific remains the largest international market with 17.4m seats, an increase of 1.5% (264,300 additional seats) vs last year.

Capacity within South East Asia declined by 0.3% vs October 25 (22,100 fewer seats). This reflects the impact that higher operating costs is having on domestic and short haul markets, particularly those operated by LCCs.

Capacity to Africa grew at the fastest rate increasing by 23.4%, though remains a small market with 99,000 seats.