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Fuel Price Increase Leads to 10-15% Fare Hike at Thai Airways

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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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image.png  Adapted by ASEAN Now · The Thaiger · 23 Mar 2026


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Buckle up girls and boys, this could get messy...

Just saw on SKY News that the price of Brent Crude is now $90 a barrel and falling.

1 hour ago, wil iam not said:

Just saw on SKY News that the price of Brent Crude is now $90 a barrel and falling.

After Big T given a sermon of peace in sight.

Do not believe before the oil tankers crossed the straight to open sea.

13 hours ago, wil iam not said:

Just saw on SKY News that the price of Brent Crude is now $90 a barrel and falling.

Jet airliners don't run on crude oil, they run on avgas. Avgas average price has more than doubled in the past month, see below.

Screenshot 2026-03-24 145507.jpg

https://www.iata.org/en/publications/economics/fuel-monitor/

China has stopped avgas exports, starving Australia and other importers. Singapore fuel brokers cannot guarantee supplies, even for airlines that have hedged. Air New Zealand announced earlier this month that their services would be extensively cut from next month. Vietnam's airlines are proceeding with the same procedure since their source has dried up. Over in the US, United Airlines is suspending a number of routes due to rising jet fuel costs amid the US-Israeli war with Iran. The Chicago-based carrier confirmed it will cut five per cent of its flights in the second and third quarters of 2026, from a network of 4,000 domestic and 800 international routes. In a letter to staff on Friday, United CEO Scott Kirby said the company was preparing for oil prices to climb as high as $175 a barrel.

35 minutes ago, NanLaew said:

Jet airliners don't run on crude oil, they run on avgas. Avgas average price has more than doubled in the past month, see below.

Avgas is for piston airplanes. Jet A is used in jets.

2 hours ago, TedG said:

Avgas is for piston airplanes. Jet A is used in jets.

Thanks, pedant.

15 minutes ago, NanLaew said:

Thanks, pedant.

I’m happy to be helpful.

Just now, TedG said:

I’m happy to be helpful.

I'm happy that you're happy, so that's two of us.

Thanks

3 minutes ago, NanLaew said:

I'm happy that you're happy, so that's two of us.

Thanks

Win/win.

21 hours ago, wil iam not said:

Just saw on SKY News that the price of Brent Crude is now $90 a barrel and falling.

Currently $96, but yes it did take a nice fall. I missed the news that must have caused this drop yesterday.

6 hours ago, NanLaew said:

Thanks, pedant.

Give correct info in the first place and us pedants will leave you alone, OK?

This is terrible news. Thai h**kers are already expensive. Now they are hitting of with higher airfares?

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