Malaysia Airlines has taken the lead over AirAsia on Malaysia-India routes for the first time since 2021. The carrier will provide 1.57 million seats in 2026, surpassing AirAsia and AirAsia X combined at 1.42 million.

The gain came with a modest increase to its own capacity, while the AirAsia group saw a 21% year-on-year drop. Malaysia Airlines' share rose from 34% to 38%, whereas AirAsia fell from 39% to 35%.

IndiGo also trimmed its seat supply on these routes by 18%; Batik Air's offerings slipped by 9%. Air India remains the only carrier expanding strongly. AirAsia's decline is linked to high fuel costs and limited aircraft availability, forcing a reduction in operations.

The shrinkage reflects broader regional trends, with few airlines able to grow despite the opportunities left by AirAsia's retreat.