Thai Airlines to clarify reasons for high fares

Thai airlines are preparing to clarify the situation in response to accusations of expensive tickets, noting that the aviation industry is poised to face another surge in jet fuel prices due to soaring crude oil prices. The Airlines Association of Thailand (AAT) will hold a seminar next week to elaborate on the airfare structure and price regulations under the control of the Civil Aviation Authority of Thailand (CAAT), after consumers cried foul over expensive airfares post-pandemic. Wutthiphum Jurangkool, CE of Nok Air, said the significant increase was seen only during long holidays, when the prices were raised based on growing demand. The price of last-minute bookings usually surge higher than average. However, he said average prices were not excessively raised in order to make more profit as airlines still had to adjust their prices to cope with surging operating costs, mainly attributed to the cost of jet fuel. He said the fuel price has been on an upward trend over recent weeks as it surged to UScopy19 per barrel yesterday, higher than the yearly average of $98.5 per barrel that the International Air Transport (IATA) estimated for 2023. Wutthiphum said amid reduced demand in the low season, it would be difficult for airlines to absorb this cost as they have to avoid incurring losses on each flight. "Airlines cannot get a strong load factor except during long holidays. With no<br/>holiday in September, domestic demand significantly dropped, with the<br/>average load factor lower than 80% for Nok Air, while the average price for domestic routes was lower than 1,000 baht per flight," said Wutthiphum.<br/>