Economics Thai Air Transport Industry Shines in 2024 with 22% Growth and Record Profits

[Georgealbert]

Picture courtesy of Matichon.

 

Thailand’s air transport sector has emerged as a standout performer in 2024, with impressive growth of 22% and profits soaring to 56.4 billion baht, according to Mrs. Oramon Sapthaweetham, Director-General of the Department of Business Development at the Ministry of Commerce.

 

Mrs. Oramon revealed that 2024 marked a golden year for Thailand’s air transport industry, with both revenue and profitability reaching new highs. This trend is expected to continue, reflecting the global air transport sector’s robust performance, with projected revenues surpassing USD 1 trillion, profits estimated at USD 36.6 billion, over 5.2 billion passengers, and 72.5 million tonnes of air cargo.

 

 

In Thailand, the air transport industry remains a high-investment, high-barrier sector with few players. This exclusivity stems from the substantial investment required and the need to meet stringent international aviation standards. As a result, the number of newly established entities each year remains limited: four companies were established in 2022, nine in 2023 (an increase of 125%), seven in 2024 (a decrease of 22.23%), and only one company during the first quarter of 2025, with a registered capital of just 200,000 baht.

 

Foreign investment in Thailand’s air transport sector currently totals 7.15 billion baht, accounting for 13.36% of total investment. The top three foreign investors are China (215.16 million baht), Switzerland (206.25 million baht), and Malaysia (204.62 million baht).

 

Over the past three years (2021–2023), the sector’s average annual revenue stood at 268.96 billion baht, with average profits of 56.42 billion baht. In 2021, total revenue reached 190.06 billion baht, with profits of 69.58 billion baht. In 2022, revenue rose by 29.15% to 245.46 billion baht, but profits fell by 62.87% to 25.84 billion baht. In 2023, revenue surged by 51.30% to 371.37 billion baht, and profits climbed by 185.88% to 73.86 billion baht, reflecting a strong recovery from the COVID-19 pandemic’s severe impacts.

 

Currently, Thailand hosts 141 air transport operators, with a combined registered capital of 53.5 billion baht. Of these, 128 (90.78%) are private companies, nine (6.38%) are partnerships, and four (2.84%) are public companies, with the latter accounting for 80.58% of the sector’s registered capital.

 

According to the Civil Aviation Authority of Thailand, the country handled 141 million air passengers in 2024, a 16% increase from 122 million in 2023. Total flights rose by 12% to 886,438, while air cargo volume grew by over 22% to 1.51 million tonnes. The surge was attributed to the reopening of borders, visa waivers, tourism recovery, and the expanding e-commerce sector.

 

Air transport is a critical driver of Thailand’s economy, both in passenger travel and freight. Thailand aims to become a regional aviation hub and climb from 19th to 9th place globally by 2033. According to SCB Economic Intelligence Center (EIC), key factors that could propel Thailand to regional aviation leadership include:

 

1. Improving airport efficiency and connectivity through public-private cooperation and the adoption of advanced technology.

 

2. Strengthening Thai-flagged airlines to increase international connectivity, as leading global airports typically rely on national carriers for about 50% of their traffic, while Thailand lags in this area.

 

3. Continuously upgrading airport infrastructure to ease congestion.

 

4. Developing an aviation hub focused on environmental, social, and governance (ESG) standards.

 

5. Enhancing flexibility to address disruptions, including building resilient hub networks and expanding point-to-point and air cargo services.

 

The government is seen as playing a pivotal role in infrastructure development, such as airport runways and air traffic systems, while the private sector must deliver efficient services. Both sectors must collaborate closely to bolster Thai airlines, expand direct flight routes, and integrate technology to boost competitiveness.

 

Mrs. Oramon also warned that the industry must navigate significant risks, including rising aviation costs, geopolitical uncertainties, fluctuating oil prices, and global trade tensions, all of which pose unavoidable challenges for Thai aviation.

 

  Adapted by Asean Now from Matichon 2025-04-27.