Muhammad Arif was charged with one count of making a false statement about a threat to damage an aircraft and failing to comply with cabin crew safety instructions.
The 45-year-old allegedly began yelling, making references to Islam and gesturing at a backpack he was wearing on his chest an hour into a Malaysia Airlines flight from Sydney to Kuala Lumpur on Monday.
Arif's legal team told Downing Centre Local Court on Wednesday they had not been instructed to make a bail application and urged the court to allow time for a mental health assessment.
"I'm asking the court to allow time for a professional to make an assessment," his lawyer Oussama Elfawal said.
"The report will show where the trajectory lies for this case."
The case has been adjourned for a mention on Friday, when Arif's legal team could make an application for his release.
"My orders depend on the mental stability of my client," Mr Elfawal said.
The Canberra man, who has been in custody since his arrest, was initially scheduled to face court on Tuesday but refused to leave his police cell.
Arif's lawyer said at the time his client had "serious mental health issues" and did not seem to understand the situation he was in.
Flight MH122 departed Sydney International Airport about 1pm carrying 194 people.
Passengers on board said Arif began praying "really loudly" after the plane took off and yelled at flight attendants while clutching a bag close to his chest.
The pilots safely returned the A330 aircraft to Sydney nearly three hours later before a long standoff ensued on the tarmac, ending with Arif's arrest.
Some passengers criticised the length of time it took for police officers to board the plane to arrest Arif.
NSW Police Commissioner Karen Webb said it was protocol in Australia to negotiate instead of storming a plane.
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