Southeast Asia aviation market briefing

Overall capacity in the SE Asia market remained constant this month with a 0.8% increase compared to Aug 25 to 51million seats.

Domestic capacity increased by 1.4% this month and represents 45% of the market.

International capacity was almost static, with just an 0.4% increase to 28.2m and represents 55% market share.

Mainline carriers now hold 56% of Southeast Asian capacity with 28.5m seats, growing by 5.9% vs August 2025. Low cost carriers contracted by 4.9% to 22.5m seats, reducing their share from 47% to 44% year on year.

LCC contraction continues across the region, led by Thai AirAsia at −23.4% and AirAsia at −17.0%, partially offset by Citilink's exceptional +72.8% growth, while mainline growth is led by Vietnam Airlines and Batik Air.

Indonesia remains the largest SE Asia market with 11m seats, an increase of 4.3% vs August 25.

Viet Nam is the second largest market in SE Asia with 7.3m seats, a 10% increase vs last year.

Capacity reduced in Malaysia, the Philippines and Thailand with 376,400, 286,500 and 123,400 fewer seats respectively.

Indonesia is the largest domestic market in SE Asia, with 8.8m seats, an increase of 5.4% in capacity (450,500 additional seats).

Domestic capacity increased at the fastest rate in Viet Nam by 13.8% vs August 25, 575,400 additional seats compared to Aug 25.

Volume wise domestic capacity in Malaysia declined most, by 456,800 seats in August 26.

Vietnam Airlines is the busiest airline with 2.8m seats and increased capacity by 8.2% vs last year.

Singapore Changi remains the largest airport in the region, with 3.6m seats. This represents a 3.5% increase in capacity compared to last year. Jakarta, Indonesia, is second busiest airport, with capacity of 3.3m an increase of 3.1% vs August 25.

Capacity at Bangkok Don Mueang, Manila and Kuala Lumpur continued to reduce by 7.5%, 5.8% and 3.4%, with 122,900, 156,700 and 113,600 fewer seats respectively.

Capacity increased at the fastest rate of 12.2% vs last year, 230,100 additional seats, in Hanoi, Vietnam.

SE Asia capacity to the rest of Asia Pacific remains the largest international market with 16.8m seats, reducing by 0.2% (35,900 fewer seats) vs last year.

International capacity within SE Asia, the next largest market with 6.7m seats, increased by 1.2% (82,900 additional seats) vs Aug 25.

Capacity to Europe and North America grew at the fastest rate increasing by 10.8% and 9% respectively, with 1.7m seats and 325,400 seats.

Capacity to the Middle East declined by 4.6% vs Aug 25 (124,100 fewer seats).