Malaysia AirAsia could become SE Asia's largest airline in 2019

Premium Analysis

AirAsia has regained market share in its original home market of Malaysia after accelerating short haul expansion. Malaysia AirAsia’s in-service fleet has expanded by 10 aircraft this year, driving 17% seat capacity expansion as utilisation and average seat density have also increased.

Malaysia AirAsia’s market share in Malaysia has exceeded 40% for the first time this year as it has benefitted from capacity reductions at Malindo and Malaysia Airlines. As a brand, AirAsia will account for nearly 55% of all passenger traffic in Malaysia in 2018 when an 8% share for Malaysian long haul LCC AirAsia X and approximately a 5% share for the group’s overseas affiliates are included. 

Malaysia AirAsia is planning more double digit capacity expansion in 2019 as it adds another five or six aircraft, including its first A321neo. The short haul LCC is planning to deploy the A321neo on high frequency routes, resulting in a 28% seat capacity increase compared to the A320ceo, or a 24% increase compared to its new A320neo fleet, without having to mount additional flights.

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