According to a report by OAG, a UK-based aviation data analytics company, Vietnam surpassed Thailand to become Southeast Asia's second-largest aviation market, offering 7.4 million seats in July. This represents a 5.6% increase compared to July of the previous year. Indonesia maintained its position as the largest market with 10.9 million seats, a 0.3% increase year-on-year.

Thailand, which previously held the second position in recent months, dropped to third place with 6.9 million seats, experiencing a 3% decrease in capacity. Malaysia and the Philippines followed in the rankings.

A Vietnam Airlines aircraft landing at Noi Bai Airport. Photo: Luu Quy.

The total aviation capacity for Southeast Asia in July reached 50.4 million seats, a 1.2% decrease compared to July of the previous year. Domestic capacity saw a 1.3% decline, accounting for 45% of the market, while international capacity decreased by 1% but still represented 55% of the market. This reduction was primarily due to rising fuel costs, a result of geopolitical tensions in the Middle East.

Legacy carriers currently hold 56% of the region's total capacity, providing 28.3 million seats, an increase of 5% compared to July 2025. In contrast, low-cost carriers experienced an 8.1% decrease, falling to 22.1 million seats, which reduced their market share from 47% to 44% year-on-year.

The downward trend for low-cost airlines continued across the region, with the most significant declines observed in AirAsia, Lion Air, and Thai AirAsia. Conversely, the growth of legacy carriers was largely driven by Vietnam Airlines, Singapore Airlines, and Batik Air.

The report also indicated that Indonesia remains the largest domestic aviation market in the region, with 8.7 million seats. Vietnam recorded the fastest growth in domestic capacity, increasing by 8.1% compared to July 2025, which corresponds to an additional 369,700 seats.

Singapore's Changi Airport continued to be the largest airport in the region, handling 3.6 million seats. Its capacity remained largely stable, with a slight 0.1% increase compared to July of the previous year. Noi Bai Airport in Vietnam was the fastest-growing airport in the region, with its capacity increasing by 8.1%, adding 166,400 seats compared to the previous year.