MGR Online — Vietnam became the second-largest aviation market in Southeast Asia (ASEAN) in July 2026 after airlines expanded seat capacity to accommodate a growing number of international tourists, Vietnamese media reported.
Data from OAG, a UK-based aviation analytics firm, showed that Vietnam has moved past Thailand to rank second in the region by seat count.
The report stated that airlines operating across Southeast Asia offered a combined total of 50.4 million seats in July, with Indonesia remaining the region's largest aviation market at 10.9 million seats, up 0.3% from July 2025.
Vietnam ranked second with 7.4 million seats, a year-on-year increase of 5.6%, while Thailand dropped to third place with 6.9 million seats in the same period. Malaysia followed at 5.2 million seats, ahead of the Philippines at 4.9 million seats and Singapore at 3.6 million seats.
The report noted that Vietnam's growth occurred even as overall regional aviation capacity edged slightly lower, with total regional seat numbers declining 1.2% compared to July 2025, according to OAG data.
Vietnam's stronger aviation performance aligns with continued growth in inbound tourism. Figures released by the General Statistics Office of Vietnam showed that the country welcomed 1.67 million international visitors in July, a rise of 6.6% from the same month the previous year.
In the first seven months of 2025, Vietnam received 13.9 million international tourists, up 13.8% compared to the same period the year before. This figure represents approximately 56% of the government's target of attracting 25 million international tourists this year.
The report also noted that Vietnam Airlines was the largest airline in Southeast Asia in July, with 2.8 million seats.
Full-service carriers across the region continued to expand, with a combined seat count of 28.3 million, commanding a 56% market share and rising 5% compared to July 2025. In contrast, low-cost carriers saw their seat numbers fall 8.1% to 22.1 million, causing their market share to decline from 47% to 44% over the same period.
Growth among full-service carriers was driven by Vietnam Airlines, Singapore Airlines, and Batik Air, while low-cost carriers such as AirAsia, Lion Air, and Thai AirAsia continued to reduce their seat capacity.
