Philippines aviation bucks slowdown in ASEAN

MANILA, Philippines — The Philippines is proving to be an outlier in the regional slowdown on air travel, registering the only growth in seat capacity among Southeast Asia’s largest economies.

Based on OAG’s aviation market data, the Philippines recorded the fourth largest seat capacity in Southeast Asia in May, reaching 5.62 million.

OAG said the country is one of only two in the region that posted capacity growth, lifted by the operational strength of low-cost carrier Cebu Pacific.

“The Philippines is bucking the trend with six-percent growth to 5.7 million seats. This is driven by Cebu Pacific, and part of this is driven by the geography of the Philippines, which makes air travel essential, and the domestic tourism demand remains strong,” OAG said.

In Southeast Asia, Indonesia maintained its position as the largest market with 10 million seats in May. However, the capacity is seven percent lower compared to a year ago.

Likewise, Thailand’s flight capacity declined by five percent to 6.75 million seats, while Vietnam recorded an eight-percent drop to 5.69 million.

Malaysia also endured a one-percent reduction in seat capacity to 5.56 million, while Singapore logged a three-percent decrease to 3.5 million.

OAG said the region’s capacity was cut by three percent to 48.1 million, as airlines suspended a handful of flights to trim petroleum use as jet fuel prices rose.

“Overall capacity in the Southeast Asian market reduced by 3.1 percent compared to May 2025, to 48.1 million seats. Jet fuel costs have risen sharply due to geopolitical tensions, also leading to Thailand and China – primary suppliers in the region – suspending jet fuel exports,” OAG said.

Cebu Pacific raised its seat capacity by 16 percent to 2.64 million in May, making it the region’s second biggest carrier. AirAsia topped the list with 2.66 million, while Vietnam Airlines ranked third with 2.25 million.

However, OAG warned that if jet fuel prices continue to be elevated, low-cost carriers like Cebu Pacific would suffer the hardest because their margins are already stretched.

“Even before the fuel crisis, these low-cost carriers were already fragile with aircraft shortages, maintenance issues and operating on margins too thin to absorb any shock,” OAG said.