Malaysia Airlines has become the largest carrier between Malaysia and India, scheduling 1.57 million seats in 2026 compared to a combined 1.42 million for AirAsia and AirAsia X, according to Cirium data. This marks the first time since 2021 that AirAsia has lost its top position on these routes.
Malaysia Airlines achieved this with just 1% growth in seats from 2025, while the AirAsia group cut nearly 378,000 seats, a 21% reduction. The overall Malaysia-India market shrank by 10% in seats this year, with Malaysia Airlines' share rising from 34% to 38% and AirAsia's falling from 39% to 35%.
AirAsia's retreat is driven by high fuel costs, with jet fuel averaging $183 a barrel in the second quarter, up 66%. The group posted a net loss of RM831 million ($204 million), suspended 81 routes, and is returning 25 aircraft early while seeking up to $1 billion in financing.
Other rivals are not filling the gap: IndiGo's seats fell 18% and Batik Air's 9%, while only Air India grew strongly with a 29% increase. Narrowbody delivery slots are scarce until roughly 2033, limiting the ability of airlines to add capacity quickly.
For travellers, this means fewer seat options on Malaysia-India routes as the market shrinks, with Malaysia Airlines gaining a larger share but not expanding significantly. AirAsia's reduced presence could lead to higher fares or less competition in the short term.
