Airlines in Southeast Asia are continuing to build back capacity at
the same time as airports in the region step up to meet the strong flow
of returning passengers post-pandemic.
New figures from airline data specialist OAG show that while
Southeast Asia capacity in June 2023 is 17% below where it was in June
2019, it is 24% up on June 2022.
And while international capacity is down 23% vs June 2019, it is recovering and has grown 119% since June 2022.
“Growth prospects for international passenger markets remain healthy,
supported by positive trends in forward bookings over the coming
months,” said Subhas Menon, Association of Asia Pacific Airlines
director general.
“While global economic growth is expected to moderate, the
International Monetary Fund (IMF) has projected Asia Pacific economies
to record a combined 4.6% increase in GDP this year, up from 3.8% in
2022, with domestic demand supporting growth in business and leisure
travel,” he added.
Collectively, Asia Pacific airlines recorded a 249.8% year-on-year
increase in the number of international passengers carried to a total of
20.3 million in April, with demand averaging 63.3% of the corresponding
month in 2019.
The country with the largest capacity in Southeast Asia
remains Indonesia which makes up 29% of the region's capacity, ahead of
Vietnam (19% of the region's total capacity) and Thailand (16%).
Singapore’s Changi Airport experienced the highest international
growth last month. OAG figures reveal it is now ahead of both Bangkok
and Kuala Lumpur in terms of recovery against 2019 capacity. With a 6%
increase month on month, seat capacity in May 2023 reached three
million, just 13.8% behind the capacity level in May 2019.
Other key insights from the OAG report:
- Scoot, the low-cost arm of the SIA group, is close to recovery, with flights operating in June at just 1% below 2019 levels.
- Lion Air remains Southeast Asia's largest carrier by seat volume and
capacity, it is now 8% below June 2019. Vietnam Airlines is the second
largest airline, now exceeding June 2019 capacity by 14%.
- The top route in Southeast Asia remains Hanoi to Ho Chi Minh City with 927,000 seats, an increase of 9% in June vs May 2023.
- Five of the Top 10 domestic routes in Southeast Asia are internal
Indonesian flights with Jakarta to Denpasar-Bali continuing to be the
largest of these and ranked second largest in the region.
- Singapore continues to be a key hub in Southeast Asia and seven of
the top 10 international routes in the region start or end in Singapore.