The Southeast Asia airline market has demonstrated robust growth, with overall airline capacity increasing by 4.5% compared to June 2024, reaching 38.6 million seats, according to the latest data from OAG.
International airline capacity continues to outpace domestic expansion, growing at 5.3%, while domestic capacity saw a 3.8% increase year-on-year. Domestic travel currently represents 58% of the total market, with international flights accounting for the remaining 42%.
Indonesia remains Southeast Asia’s largest airline market, offering 10.4 million seats despite a 4.1% decline compared to last year, impacted by aircraft shortages, maintenance challenges, financial pressures, and government-mandated fare reductions.
Thailand follows as the second-largest market, with 6.6 million seats, reflecting a 5.8% year-on-year increase, adding 364,700 additional seats. Vietnam and Malaysia led the region’s capacity growth, increasing by 662,000 and 630,300 seats, respectively.
Timor-Leste reported the highest percentage growth at 36.7% compared to June 2024, though it remains one of the smaller country markets.
Among airports, Singapore Changi remains the busiest, offering 3.5 million seats, marking a 4.1% increase over last year. Kuala Lumpur, Jakarta, and Bangkok Suvarnabhumi follow closely with capacities of 3.13 million, 3.03 million, and 2.99 million seats, respectively. Vietnamese airports Hanoi and Ho Chi Minh City recorded the fastest growth rates within the Top 10, increasing by 10% and 11%, respectively.
Despite overall regional growth, Jakarta was the only airport in the Top 10 to report a decline in capacity, falling by 6.1% compared to June 2024.
As the Southeast Asian airline sector continues its steady recovery and expansion, market dynamics indicate growing international demand, strengthening domestic operations, and continued resilience among key hubs.
