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Domestic Airfare Prices Plunge as China Routes Cut

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file photo

 

Domestic airfares in Thailand are seeing a notable decrease as airlines withdraw from underperforming Chinese routes to bolster domestic flights. This shift comes amid complaints over high fares for routes like Bangkok-Hat Yai, where tickets reportedly reached nearly 10,000 baht. The Civil Aviation Authority of Thailand (CAAT) is investigating, as low-cost carriers have a price ceiling of 7,266 baht for this route.

 

Puttipong Prasarttong-Osoth of Bangkok Airways reported a 2.2% drop in average airfares year-on-year for the third quarter, with a further 1.1% decline over nine months. This reduction is credited to increased competition among local airlines, leading to discounted fares. Meanwhile, weak demand from foreign travellers has pushed Thai AirAsia’s average fares down by 12% to 1,633 baht.

 

Wutthiphum Jurangkool of Nok Air highlighted challenges in maintaining revenue, despite holding a 25% domestic market share compared to Thai AirAsia’s 37%. Nok Air has ceased all international operations, including Chinese routes, after a safety red flag, further contributing to the domestic flight surge. The global trend also saw a 5% drop in airfares this year.

 

Wutthiphum noted the challenges Thai carriers face due to strong competition from state-backed Chinese airlines, with many carriers redirecting aircraft to domestic routes. Nok Air and Thai Lion Air have significantly reduced or cut services to China. This phenomenon has resulted in a surplus of domestic flights and lowered airfares in the region.

 

Bangkok Airways has also made adjustments due to shifting demands, reducing routes to destinations like Phnom Penh and Lampang. Yet, European markets, bolstered by passengers from Germany and the UK, have supported international segments, contributing 82% of total passenger revenue. The airline reported a net profit of 3.13 billion baht from 3.24 million passengers over nine months, reported the Bangkok Post.

 

Key Takeaways

 

  • Thai domestic airfares are dropping due to less competition on international routes.
  • Chinese market challenges push airlines to focus on boosting local flight options.
  • Despite route cuts, European passenger numbers help Bangkok Airways' international performance.

 

image.png  Adapted by ASEAN Now from Bangkok Post 2025-12-04

 

 

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I can remember a CM-BKK flight at around 2000 THB.  But I haven't flown in years.

Round trip ticket Bangkok/Khon Kaen bought yesterday, 4795 baht Thai.

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