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Myanmar international aviation outlook: after two years of rapid expansion, growth starts to slow

Myanmar’s international market has roughly doubled in size in the two years two since the former pariah state started liberalising. Nine foreign carriers have entered the market while all 13 of the foreign carriers which were already serving Myanmar have added capacity.

But the additional capacity has so far outstripped the increase in demand for passenger services. Load factors in Myanmar are now well below industry norms.

Fortunately foreign carriers appear to be slowing down their expansion and total capacity for the 2014/2015 winter season is likely to be roughly flat compared to the winter season which was just completed. Eventually all the capacity added over the last two years will be absorbed, providing a bright outlook as demand for services to Myanmar continues to grow.

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