Airfares in Thailand likely to remain pricey

Airfares are expected to remain high this year based on rising operating costs and supply chain disruptions, similar to last year when higher fares drove the revenue of major airlines operating in Thailand. Santisuk Klongchaiya, CE of Asia Aviation, the majority shareholder of Thai AirAsia, said higher airfares were the main contributor to an improving financial performance in 2024, with the airline securing 49.4b baht in revenue from sales and services, up 20% year-on-year. According to the airline’s report, rising costs from airport charges and ground handling fees would continue to affect airfares this year, along with high travel demand. The aviation industry’s supply chain disruption is expected to persist, resulting in stable airfares or an increase of no more than 10%. Last year the average airfare on Thai AirAsia increased by 10% year-on-year to 1,967 baht, surpassing the 2019 level by 33%. The airline recorded its first positive core operating profit since the pandemic, earning more than 3b baht in 2024. Thai AirAsia carried 20.8m passengers with an average load factor of 91%, earning a 40% share of the domestic market. Santisuk said the airline targets 23-24m passengers this year with a 90% load factor. Thai AirAsia projects 15% growth in revenue from sales and services, driven by fleet expansion and a favourable fare outlook.<br/>