In this month's webinar, OAG Chief Analyst John Grant and Deirdre Fulton (MIDAS Aviation) were joined by Hannah Pearson (Pear Anderson) and Mark Souter (Chief Airline Marketing Officer, Aboitiz Infracapital Cebu Airport Corporation) to take stock of where Southeast Asia's aviation market stands heading into summer 2026 - looking at capacity trends, demand shifts, and the long-term growth outlook for the region.
Key takeaways from the discussion:
- ASEAN capacity is growing strongly this summer - International capacity is up across all major markets, with Malaysia leading at nearly 20% year-on-year, followed by the Philippines (+9.8%) and Vietnam (+9.2%).
- Domestic markets are in good shape - The Philippines and Thailand are seeing strong domestic growth, while Indonesia - the region's largest domestic market - has moved back into positive territory with 5.2% growth this summer.
- Travel patterns are shifting - Ongoing disruption to Middle East air routes is affecting how passengers connect between Southeast Asia and Europe. A Pear Anderson/ASEANTA survey found that 64% of Southeast Asian travel businesses expect demand to redirect toward regional travel within Southeast Asia as a result.
- The Philippines is a standout market - With LCCs forecast to hold 61% of capacity by 2026 and secondary airports like Angeles/Mabalacat and Tacloban posting strong growth, the Philippines continues to demonstrate sustained, broad-based expansion.
- Longer-term fundamentals remain positive - Despite near-term external pressures, the underlying growth drivers for Southeast Asian aviation - rising middle-class travel demand, improving connectivity, and strong intra-regional flows - remain intact.
Watch the full panel discussion below, and download the slide deck for the complete data.