Thai Airways has raised ticket prices by 10% to 15% due to increased jet fuel costs, driven by Middle East unrest. CEO Chai Eamsiri highlighted that fuel prices surged from US$80 to US$220 per barrel, significantly impacting operational expenses. This fare increase aims to offset the rising costs; however, flight services continue unaffected on non-Middle Eastern routes.
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The escalation in fuel prices is linked to ongoing tensions involving a US-Israel coalition and Iran, which have disrupted energy markets. Thai Airways, while adjusting fares, finds the situation less severe than the COVID-19 period when operations were halted entirely. Despite price adjustments, a notable 10% decline in advance bookings compared to last year indicates reduced travel confidence among passengers.
Chai mentioned that further fare hikes might be necessary if the situation persists. Thai Airways' executive board is convening this week to formulate a short-term strategy focused on cutting unnecessary expenses. The airline aims to sustain operations without the drastic conditions experienced during its prior business rehabilitation phase.
Revenue projections for Thai Airways, originally set at 200 billion baht for this year, might be revised due to the volatile situation. Investment plans are currently on hold to preserve cash reserves. Meanwhile, the Civil Aviation Authority of Thailand (CAAT) is coordinating reduced domestic flight prices by 30% for the Songkran festival, despite expectations of lower domestic travel due to the global uncertainty, reported The Thaiger.
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Adapted by ASEAN Now · The Thaiger · 23 Mar 2026