An aircraft lands at Noi Bai International Airport (Photo: Tien Tuan).
Vietnam has overtaken Thailand to become the second-largest aviation market in Southeast Asia by seat capacity, according to new data from UK-based aviation analytics company OAG.
OAG said airlines operating across Southeast Asia offered a total of 50.4 million seats in July.
Indonesia remained the region's largest aviation market with 10.9 million seats, up 0.3 per cent from July 2025.
Vietnam ranked second with 7.4 million seats, an increase of 5.6 per cent year on year, surpassing Thailand, which recorded 6.9 million seats during the same period.
Malaysia followed with 5.2 million seats, ahead of the Philippines with 4.9 million and Singapore with 3.6 million.
Vietnam's rise came despite a slight decline in the region's overall aviation capacity. Total seat supply across Southeast Asia fell 1.2 per cent compared with July 2025, according to OAG.
The stronger aviation performance coincided with continued growth in inbound tourism.
Figures released by Vietnam's Statistics Office under the Ministry of Finance showed the country welcomed 1.67 million international visitors in July, up 6.6 per cent from the same month last year.
During the first seven months of 2026, Vietnam received 13.9 million international arrivals, an increase of 13.8 per cent compared with the same period in 2025. The total represents around 56 per cent of the government's target of attracting 25 million foreign visitors this year.
The performance is seen as encouraging because it comes during the traditional low season for international tourism, while global economic and geopolitical uncertainties continue to weigh on travel demand.
At the airline level, Vietnam Airlines remained the largest carrier in Southeast Asia by seat capacity, offering 2.8 million seats in July.
Full-service airlines across the region continued to expand operations, providing 28.3 million seats, equivalent to 56 per cent of Southeast Asia's total capacity and an increase of 5 per cent compared with July 2025.
By contrast, low-cost carriers reduced capacity by 8.1 per cent to 22.1 million seats. Their market share also fell from 47 per cent to 44 per cent over the same period.
The decline among budget airlines was driven by capacity reductions at carriers including AirAsia, Lion Air and Thai AirAsia. Meanwhile, growth among full-service airlines was led by Vietnam Airlines, Singapore Airlines and Batik Air.