Asia Pacific LCCs have further strengthened their market foothold
The post-pandemic environment has proven particularly conducive to low-cost carriers in the Asia Pacific region, as this business model continues to grow more quickly than that of traditional airlines.
LCCs are well suited to this region, which features many markets with rapidly rising demand, driven by a growing middle class. The massive numbers of aircraft orders placed by Asia Pacific LCCs in the region are testament to their confidence in further expansion.
Of course, LCCs have been evolving in recent years, with airlines expanding the traditional LCC model to include bundled fares, widebody aircraft, premium seating, and an increased focus on connecting traffic.
This is blurring the lines between models somewhat, and allows the LCCs to target new market segments.
There is great disparity between different markets within the vast Asia Pacific region. LCC penetration is still highest in Southeast Asia and the Indian subcontinent, and is relatively low in North Asia.
This means there is still significant potential for the average LCC share to expand in Asia Pacific.
The continued growth of LCC widebody operations is noteworthy, with Asia Pacific LCCs leading the way with this approach.
Many of the points discussed here were included in a state-of-the-industry presentation at the CAPA Airline Leader Summit - Asia in Singapore on 30-Oct-2025.
- Low-cost carriers (LCCs) in Asia Pacific have experienced faster growth than full-service airlines since the pandemic, with LCC seat capacity now exceeding 2019 levels.
- LCCs are particularly successful in Southeast Asia and South Asia, where their market share of system seats is 52% and 68% respectively, driven by rising middle-class demand.
- The LCC business model in Asia Pacific is evolving, with airlines introducing bundled fares, premium seating, widebody aircraft, and increased connecting traffic to target new segments.
- Asia Pacific LCCs are leading the global trend in operating widebody aircraft, with 136 in service and 127 on order, enabling expansion into longer and higher-capacity routes.
- LCCs have climbed significantly in the region’s airline rankings, with carriers like IndiGo, Vietjet, and HK Express making major gains in international seat capacity.
- Despite strong growth, LCC penetration remains relatively low in Northeast Asia and China, indicating further potential for expansion in these markets.