A new analysis released by the OAG Southeast Asia Airlines Tracker reveals robust expansion in the region’s aviation sector, with overall airline capacity reaching 50.5 million seats this month, representing a 4.8% increase compared to October 2024.
The data indicates that the resurgence of global tourism is heavily influencing the regional dynamic. International capacity experienced stronger growth, increasing 5.6% year-over-year and accounting for a dominant 56% share of the total market. Meanwhile, domestic capacity grew at a slightly slower but still healthy rate of 3.8%, making up the remaining 44%. (Note: As of July 2025, international capacity is reported on a two-way basis, representing a change from the prior one-way departing methodology.)
Market Leaders and Growth Hotspots
While Indonesia remains the region’s largest country market, offering 10.6 million seats, its capacity saw a reduction of 4.4% compared to last year. In contrast, Thailand, the second-largest market with 7.6 million seats, registered a strong 5.9% increase in capacity, cementing its appeal as a global travel hub.
The primary drivers of volume growth this month were Vietnam and Malaysia, which collectively added more than 1.6 million seats. Vietnam led the volume increase with 815,000 additional seats, closely followed by Malaysia with 814,000 additional seats year-over-year.
Capacity in smaller economies demonstrated the fastest rate of recovery and expansion. Laos recorded the highest percentage growth, surging 19.1%, followed closely by Cambodia, which expanded its capacity by 17.6% versus October 2024.
Airport Performance: Kuala Lumpur and Hanoi Lead the Pack
Singapore Changi (SIN) maintains its position as the largest airport in the region, providing 3.6 million seats, though its growth was modest at 0.7%.
The biggest story among the major hubs is Kuala Lumpur International Airport (KUL). It ranked as the second busiest airport with 3.4 million seats and posted the fastest growth among the Top 10, soaring 15.5% over the previous year. This high growth rate was nearly matched by Hanoi’s Noi Bai International Airport (HAN), which saw capacity jump 15%.
Conversely, within the Top 10 regional airports, Makassar’s Sultan Hasanuddin International Airport (UPG) in Indonesia continued to experience the highest capacity reductions, with a decline of 11.8% compared to October 2024.
“The SE Asia aviation market is clearly in expansion mode, with carriers focusing on high-demand international routes, as evidenced by the 5.6% surge,” said an OAG analyst. “While the region’s largest domestic market, Indonesia, is still recalibrating, the explosive growth we see in Vietnam, Malaysia, and rapidly expanding smaller markets like Laos and Cambodia shows dynamic strategic network development across Southeast Asia.”
