Southeast Asia Outlook: Lower growth and improved profitability for the second consecutive year

Southeast Asia passenger growth will accelerate over the next several years, fuelled by a growing middle class and gigantic order book. But 2016 will experience lower growth rates for the third consecutive year as the region's airlines continue to make adjustments following a period of overzealous - often "strategic" - expansion. While profitability improved in 2015 a majority of airlines in the region remain unprofitable and could struggle to turn the corner in 2016 due to intense competition and lingering overcapacity in some markets.