Ticket turbulence: Thai airlines aim to price things right amid rising costs

[webfact]

 

Thai airlines plan to explain the accusations of raising ticket prices amid higher jet fuel costs. The Airlines Association of Thailand (AAT) announced it will host a seminar to clarify airfare structures and CAAT price regulations following consumer complaints.

 

Nok Air CEO Wutthiphum Jurangkool stated that price increases mainly occurred during extended holidays due to high demand, impacting last-minute bookings. The 42 year old clarified that airlines adjusted fares in response to rising operational costs, especially jet fuel expenses, rather than excessively raising average prices for extra profit.

 

Wutthiphum mentioned the rising jet fuel cost, hitting US$119 (4,232 baht) per barrel, exceeding IATA’s 2023 estimate of US$98.5 per barrel. He highlighted airlines’ struggles during the low-demand season, making it difficult to cover these higher costs without incurring losses on each flight.

 

by Alex Morgan

Photo Courtesy of InThailand.Travel

 

Full story: https://thethaiger.com/news/business/thai-airlines-respond-to-ticket-price-hike-accusations-amid-rising-fuel-costs

 

-- The Thaiger 2023-09-08

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[2baht]

Airlines and banks! Milk it for all you can, grubs!  ????

[Olmate]

6 minutes ago, 2baht said:

Airlines and banks! Milk it for all you can, grubs!  ????

 Quaintas Irish pixie CEO AU$ 28 million handshake grub No1.!

[2baht]

Just now, Olmate said:

 Quaintas Irish pixie CEO AU$ 28 million handshake grub No1.!

Yes! ☹️

[peter zwart]

21 minutes ago, webfact said:

Wutthiphum mentioned the rising jet fuel cost, hitting US$119 (4,232 baht) per barrel, exceeding IATA’s 2023 estimate of US$98.5 per barrel. He highlighted airlines’ struggles during the low-demand season, making it difficult to cover these higher costs without incurring losses on each flight.

Then hedge when its low.

[ChaiyaTH]

Well they talk about fuel but I call it nonsense. Many flights of similar distances are priced entirely different. Also they changed many flight times to times that make no sense at all.

 

For example the Chiang Mai Khon Kaen flights are very limited but reasonable priced, but Udon Thani costs double. Also Chiang Mai to Surat Thani now arrives at 9PM, forcing one to stay in the city over night and wasting time (before being able to go to samui, phangan, tao).

 

From bangkok to anywhere and to bangkok from anywhere it is still cheap as chips.

Edited September 8, 2023 by ChaiyaTH

[ChaiyaTH]

31 minutes ago, peter zwart said:

Then hedge when its low.

Airline fuel is bought in contracts, the current price is not even relevant, unless its about a new contract. That is also why prices not go up or down at the same time.

Edited September 8, 2023 by ChaiyaTH

[ExpatOilWorker]

53 minutes ago, webfact said:

The 42 year old clarified

What, why do we need to know his age?

[NanLaew]

42 minutes ago, peter zwart said:

1 hour ago, webfact said:

Wutthiphum mentioned the rising jet fuel cost, hitting US$119 (4,232 baht) per barrel, exceeding IATA’s 2023 estimate of US$98.5 per barrel. He highlighted airlines’ struggles during the low-demand season, making it difficult to cover these higher costs without incurring losses on each flight.

Then hedge when its low.

About 15 years ago, Qantas did exactly that and locked in their avgas prices for a fixed period, whereas the others didn't. When avgas prices soared, Qantas was sitting pretty and banking like gang busters but pretty sure most of the profits went into the pockets of shareholders as I don't recall them ever being a bargain airfare carrier.

[ikke1959]

It is easy to explain... Many countries raised their landing and departure taxes for the climate change. In several countries flying is being discouraged for the same reasons. Oilprices are up and after the loss in the Covid period, the airlines want to make some more profit to compensate...

[impulse]

9 minutes ago, NanLaew said:

About 15 years ago, Qantas did exactly that and locked in their avgas prices for a fixed period, whereas the others didn't. When avgas prices soared, Qantas was sitting pretty and banking like gang busters but pretty sure most of the profits went into the pockets of shareholders as I don't recall them ever being a bargain airfare carrier.

I recall the guy being feted as some kind of business genius for saving Qantas, but when you looked at their total financials, the only thing that saved them was lower fuel costs.  He took the position at just the right time.

[hotchilli]

2 hours ago, webfact said:

He highlighted airlines’ struggles during the low-demand season, making it difficult to cover these higher costs without incurring losses on each flight.

So with that mentality you will charge the total price of the flight to the last passenger flying with you?

[Crocbait]

3 hours ago, Olmate said:

 Quaintas Irish pixie CEO AU$ 28 million handshake grub No1.!

Yes, but so happy the wee man has left. Pity they didn't open an emergency exit and shove him out without a parachute!

The board is under pressure to reduce his payout.

[RichardColeman]

If flight prices have risen say 60% and we are all getting charges say $300 more a flight now (probably more), I would like to see a current brake down of what the extra $60,000 is for on a flight of say 200 people. I cannot believe that fuel costs have risen $60,000 a flight to europe ! Just pure profiteering that will end the thai tourism - or at least put a further dent in it !

[Canadian Snowbird]

If international flight prices remain where they are today, it will be a dismal high season for Thailand because people will change or cancel their plans. I like to spend my winters in Thailand but had to pay an 80% increase last year and currently facing prices 280% higher than pre-covid.

[Karma80]

32 minutes ago, Canadian Snowbird said:

If international flight prices remain where they are today, it will be a dismal high season for Thailand because people will change or cancel their plans. I like to spend my winters in Thailand but had to pay an 80% increase last year and currently facing prices 280% higher than pre-covid.

I don't think Europe/N America matters as much as it did to Thailand's tourism much now post covid. Things have changed. Look at the top arrival countries - China, Russia, India, Australia, Malaysia and so on. Many are not paying long haul prices for flights and Thailand remains very affordable.

Edited September 9, 2023 by Karma80

[2baht]

22 hours ago, ChaiyaTH said:

Airline fuel is bought in contracts,

Greed is perpetual!

[Olmate]

12 minutes ago, Karma80 said:

I don't think Europe/N America matters as much as it did to Thailand's tourism much now post covid. Things have changed. Look at the top arrival countries - China, Russia, India, Australia, Malaysia and so on. Many are not paying long haul prices for flights and Thailand remains very affordable.

About 1kAUD  syd/bkk return now

[Canadian Snowbird]

11 hours ago, Karma80 said:

I don't think Europe/N America matters as much as it did to Thailand's tourism much now post covid. Things have changed. Look at the top arrival countries - China, Russia, India, Australia, Malaysia and so on. Many are not paying long haul prices for flights and Thailand remains very affordable.

Tell that to the golf course owners in Thailand. It's not the tourists from China, Russia or Malaysia that go there to play golf.

[jacko45k]

On 9/8/2023 at 11:24 AM, 2baht said:

Airlines and banks! Milk it for all you can, grubs!  ????

That's business.... maximize profits, ie charge what the market will bear. They aren't running a subsidized travel operation... well they did in the past and it didn't get them far..... 

Probably a lot of fat to be trimmed off Thai yet!

[retarius]

I doubt that Thai Air will be among the airlines that I will consider for a very long time.