Thailand's airline seat capacity fell to third place in Southeast Asia for the second consecutive month, with Vietnam now ranking second after a 10% year-on-year increase. Thai capacity declined 1.7% to 7.19 million seats, driven primarily by Thai AirAsia's 23.4% capacity cut at Don Mueang airport in response to fuel costs. The shift reflects Vietnam's competitive advantages: rapid infrastructure development, new tourist destinations (Da Nang, Phu Quoc), bulk booking practices, and strong GDP growth—contrasting with Thailand's reliance on two major Bangkok hubs and slower expansion pace. Industry experts warn that Vietnam's perceived freshness and investment momentum are attracting both tourists and investors faster than Thailand can adapt.