Myanmar aviation outlook: traffic growth exceeds 16% in 2016 but local airlines continue to struggle

Premium Analysis

Myanmar was again one of the fastest growing markets in Southeast Asia – and the world – in 2016. Domestic passenger numbers were up 15% in 2016 and have doubled since 2010, while international passenger numbers increased by 17% and have doubled since 2012.  

Myanmar’s aviation market grew rapidly in the period from 2012 to 2014, in the immediate aftermath of liberalisation, but growth slowed in 2015. The reacceleration of growth in 2016 could be a result of further liberalisation and another surge in visitor numbers following the late 2015 election of a new government led by Aung San Suu Kyi.

However, Myanmar’s market continues to suffer from overcapacity and intense competition, which makes it nearly impossible for any of the 11 local airlines to become profitable. Foreign airlines dominate the international market and the domestic market is extremely fragmented, with several subscale competitors.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,883 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.