AirAsia Just Lost a Crown It Had Held Since 2021

Malaysia Airlines has overtaken AirAsia as the biggest operator between Malaysia and India, the first time since 2021 that the low-cost group has not held the top spot. Skift, citing Cirium schedule data, reports that Malaysia Airlines has 1.57 million scheduled seats on the market in 2026, compared with 1.42 million for AirAsia and its long-haul sibling AirAsia X combined. The twist is that Malaysia Airlines barely grew. Its seat count is up just 1% on 2025, while the AirAsia group cut about 378,000 seats, a drop of 21%.

The shift has changed the market share picture. Malaysia Airlines’ share rose from 34% to 38%, while AirAsia’s slipped from 39% to 35%. The overall market is shrinking too, with total seats down 10%. IndiGo cut its seats on the route by 18% and Batik Air by 9%, while Air India bucked the trend with growth of 29%. Fuel is the main driver behind the cutbacks: jet fuel averaged $183 a barrel in the second quarter, up 66%, which hits low-cost carriers especially hard.

AirAsia’s broader finances explain why it is pulling back. The airline posted a net loss of RM831 million, about $204 million, has suspended 81 routes, plans to hand back 25 aircraft early and is seeking up to $1 billion, mostly to refinance debt. Skift reports that Malaysia Airlines and Batik Air have told the government they could only take over AirAsia’s operations at scale if they could also take on its aircraft leases, a sign of how tight aircraft supply is, with narrowbody delivery slots scarce until around 2033.

For travelers between Malaysia and India, the practical result is fewer seats overall and fewer rock-bottom fares as AirAsia trims capacity. Skift did not report on fare levels, but a market losing a tenth of its seats rarely gets cheaper. Anyone planning a trip around peak periods should book earlier than usual, compare full-service and low-cost options on total price including bags, and watch for schedule changes on AirAsia routes that may be consolidated or suspended.

Sources: Skift