OAG, the consultancy that analyses global aviation capacity, has noted this with surprise. Vietnam is rapidly establishing itself as the new aviation giant of the Association of Southeast Asian Nations, ASEAN.
The total seating capacities in the region do indeed reach 51 million in August, a modest increase of 0.8% compared with August 2025. However, this regional stability actually masks significant variations between individual ASEAN member states. The number of seats on offer is down in the Philippines, Malaysia and Thailand. Conversely, it is on the rise in Singapore, Indonesia and, above all, Vietnam. The latter country is set to become the new hub for air traffic in northern ASEAN – centred on the Mekong countries.
Thailand has 7.2 million seats available on outbound flights, down by 1.7% year-on-year, whilst Vietnam has 7.3 million seats, up by 10%, according to the new OAG data.
| Market | August 2026 seats | Annual change |
|---|---|---|
| Indonesia | 11.0 M | +4,3% |
| Vietnam | 7.3M | +10,0% |
| Thailand | 7.2M | −1.71 TP3T |
| Malaysia | 5.4M | −6.5% |
| Philippines | 4.8m | −5.71 TP3T |
| Singapore | 3.7M | +3,4% |
Domestic network strength in Indonesia and Vietnam
Whilst Indonesia remains the largest domestic market in South-East Asia with 8.8 million seats, up 5.41 per cent quarter-on-quarter, this is primarily due to its geographical layout – an archipelago of 13,000 islands – and its population of 250 million. By contrast, the growth of Vietnam’s domestic air travel market is driven by the rapid rise in the population’s standard of living and economic development.
This contrast is all the more striking given that Thailand’s economy has been virtually stagnant for over a decade. The population’s purchasing power is at a low ebb, with massive levels of debt, whilst investment remains on hold and is insufficient due to political instability, which is undermining any prospects for rapid development.
Congested airports, an outdated rail network, bureaucratic red tape – the Kingdom thus finds itself tangled in its own contradictions.
Added to this is another unfavourable factor for its role as a Mekong hub: the war with Cambodia has resulted in the closure of all land borders with that country.
Added to this is the distrust of the Thai authorities – who are banning entry into the country for Cambodian nationals as well as certain foreigners coming from Cambodia. This is a development that is helping to weaken Bangkok's status as an air hub… to the benefit of Vietnam!
Thailand is thus experiencing capacity reductions across several segments of its network. According to OAG, the Thai market has approximately 123,400 fewer seats than in August 2025. Don Mueang Airport, used by low-cost airlines, is particularly affected, with a drop of 7,5% of its capacity, whilst Suvarnabhumi has seen an increase of just 1%.
| Airport | August 2026 seats | Annual change |
| Bangkok Suvarnabhumi | 3.22m | +1,0% |
| Bangkok Don Mueang | 1.52m | −7.5% |
| Ho Chi Minh City | 2.39m | +3,2% |
| Hanoi | 2.12M | +12,2% |
This is also reflected in the way airlines’ services have evolved.
The contrast between the two countries is also evident among the airlines. Vietnam Airlines is the leading airline in South-East Asia in terms of scheduled capacity, with 2.8 million seats, up 8.2% year-on-year.
Thai AirAsia, conversely, reduced its capacity by 23,4%, representing the sharpest fall recorded among the region's major companies.
| Company | August 2026 seats | Annual change |
| Vietnam Airlines | 2.80 M | +8,2% |
| Singapore Airlines | 1.84M | +2,4% |
| Vietjet | 2.24m | −5.71 TP3T |
| Thai AirAsia | 1.44 million | −23.4% |
To watch: the new airport effect in Ho Chi Minh City
This development is part of a broader regional trend. Traditional airlines are winning back market share, mainly due to a reduction in capacity from low-cost carriers, which have been harder hit by rising jet fuel prices than their premium counterparts.
These airlines now offer 56% of air capacity in South-East Asia, with 28.5 million seats, up by 5.9%. Low-cost capacity, however, fell by 4.9% to 22.5 million seats, reducing their market share from 47% to 44%.
Another growth factor for Vietnam is the development of the international network, particularly to Europe. Thus, within a few months, Vietnam Airlines' network has added three new European destinations, namely Amsterdam, Copenhagen and Munich. Vietnam Airlines now offers connections to 8 European cities. Admittedly, Thai Airways International offers more destinations in Europe (12 destinations) than Vietnam Airlines, but its network is growing less quickly. The opening of Ho Chi Minh City's new airport at the end of the year should further boost this growth...
In total, seat capacity between ASEAN and Europe rose by 10.8% in August to 1.7 million seats. This compares with an increase of just 0.4% overall.
