Bangkok Airways will increase domestic airfares by 15–20% from April 1, citing rising fuel costs and a decline in forward bookings. The move is expected to push ticket prices closer to regulatory caps on several popular routes, including Bangkok-Samui and Bangkok-Phuket. The airline may also seek permission from the Civil Aviation Authority of Thailand (CAAT) to raise fare ceilings if costs continue to climb. Get today's headlines by email The airline’s president, Puttipong Prasarttong-Osoth, said fuel accounted for 16% of total expenses in 2025, when operating costs reached 20.7 billion baht. Due to the ongoing Middle East conflict, fuel could rise to 20% of expenses in 2026, driven by surging jet fuel prices. According to the International Air Transport Association, weekly average jet fuel prices ending March 20 jumped 106% from the previous month’s average. In 2025, Bangkok Airways reported revenue of 26.1 billion baht and net profit of 3.58 billion baht, marking a 3.4% year-on-year decline. The airline hedged fuel prices at US$80–90 per barrel for 30% of its needs, partially offsetting the impact of rising costs. However, the company said it cannot fully absorb the increases and has already raised fuel surcharges on international routes. Forward bookings between April and September rose by 1% year-on-year, but second-quarter bookings declined by 3%, mainly on international routes. In April alone, bookings for Samui airport dropped 4%, with domestic flights down 19% and international flights falling 10%. The airline attributed this to weaker demand and ongoing disruptions linked to the Middle East situation. Puttipong said further escalation of tensions could force additional measures, including reducing routes or flight frequencies on underperforming sectors. The airline is also considering negotiations with CAAT to extend airfare caps, currently set at 13 baht per kilometre for full-service carriers and 9.4 baht per kilometre for low-cost airlines. Bangkok Airways is maintaining a cautious outlook for 2026, targeting an average load factor of 80%. Passenger numbers and flights are expected to remain steady at 4.3 million and 48,000 respectively, while the fleet will stay at around 25 aircraft, with only two new deliveries planned by year-end. The Bangkokpost reported that the airline also warned that continued suspension of Middle Eastern carriers could impact its catering business, which relies heavily on those airlines. Bangkok Air Catering reported revenue growth of 19% to 1.29 billion baht in 2025, serving more than 7.19 million meals to 31 airlines. Join the discussion? Already a member? Adapted by ASEAN Now Bangkokpost 29 Mar 2026
View full article
Create an account or sign in to comment