Indonesia remained the largest Southeast Asia market with 10.9 million seats, up 0.3% year-on-year.

Thailand, which held the second spot in previous months, slipped to third place with 6.9 million seats, a 3% reduction in capacity, followed by Malaysia and the Phillippines.

The report said capacity reduced in Malaysia, Thailand and the Philippines due to the Middle East crisis.

Tourists wait to check in for flights at Suvarnabhumi airport in Bangkok, Thailand, Jan. 4, 2023. Photo by Reuters

Vietnam Airlines is the largest airline in Southeast Asia in July with 2.81 million seats, growing by just 0.1% year-on-year, according to OAG.

Overall capacity in the Southeast Asian market reduced by 1.2% compared to July last year to 50.4 million seats due to rising fuel costs triggered by political tensions in the Middle East, OAG reported.

A series of Southeast Asian airlines recently cut international routes amid rising fuel costs.