Southeast Asia aviation market briefing

Overall capacity in SE Asia increased by 2% vs last year to 48 million seats.

Domestic capacity is growing by 3.5% and represents 45% of the market.

International capacity is flatter, up just 0.7% year on year to 26.5m and represents 55% market share.

Mainline carriers now hold 56% of Southeast Asian capacity with 26.9m seats, growing by 6.4% vs September 2025. Low cost carriers contracted by 3.3% to 21.1m seats, reducing their share from 46% to 44% year on year.

LCC contraction continues across the region, led by AirAsia at −15.7% and Thai AirAsia at −24.8%, partially offset by Citilink's exceptional +54.2% growth, while mainline growth is led by Batik Air (+19.6%) and Vietnam Airlines (+10.7%).

Indonesia remains the largest SE Asia market with 10.8m seats, an increase of 7.3% vs September 25.

Thailand is the second largest market in SE Asia with 6.6m seats, a 0.2% reduction vs last year. Viet Nam is a close third largest market, growing by 9.2% to 6.4m seats.

Capacity reduced in Malaysia, the Philippines and Cambodia with 321,900, 152,500 and 50,500 fewer seats respectively.

Indonesia is the largest domestic market in SE Asia, with 8.7m seats in September 26, an increase of 9.5% in capacity (752,900 additional seats).

Domestic capacity growth is also strong in Viet Nam this month, up by 10.5% year on year.

Volume wise domestic capacity in Malaysia declined most, down by 15.3% to 2.4m seats in September.

AirAsia is the busiest airline with 2.4m seats despite a reduction of 15.7% (444,200 fewer seats) vs last year.

Singapore Changi remains the largest airport in the region, with 3.4m seats. This represents a 1.7% increase in capacity compared to last year. Jakarta, Indonesia, is second busiest, with an increase of 6.1% vs September 25.

Capacity at Bangkok Don Mueang, Kuala Lumpur and Manila reduced by 6.8%, 2.6% and 2.7%, with 101,200, 86,100 and 65,500 fewer seats respectively.

Capacity increased at the fastest rate of 9.3% (155,100 additional seats) vs last year in Hanoi, Vietnam.

SE Asia capacity to the rest of the Asia Pacific region remains the largest international market with 15.8m seats, with a small increase of 0.8% (119,600 additional seats) vs last year.

International capacity within SE Asia, the next largest market with 6.4m seats, remains constant with a minor increase of just 0.1% (6,000 additional seats) vs September 25.

Capacity to Africa grew at the fastest rate increasing by 23.2%, though remains a small market with 95,400 seats.

Capacity to the Middle East declined by 3.8% vs September 25 (92,600 fewer seats).