Airports of Thailand (AOT) has sharply reduced its passenger growth forecast for the 2026 fiscal year to possibly below one per cent, citing global economic uncertainty and geopolitical tensions, while maintaining expansion plans to meet long-term demand. Get today's headlines by email The revised forecast marks a significant downgrade from AOT’s earlier projections of six per cent growth, later cut to around three per cent. The latest reduction follows the impact of conflict in the Middle East, which has driven up aviation fuel prices, increasing operating costs for airlines. AOT president and chief executive officer Paweena Jariyathitipong said the company’s six airports handled 552,119 flights during the first eight months of the fiscal year, covering October 2025 to May 2026. This represented a 1.38 per cent increase compared with the same period a year earlier. Passenger numbers reached 90.98 million, up 2.76 per cent year-on-year, including 55.2 million international travellers and 35.7 million domestic passengers. Despite the weaker outlook for this year, AOT expects passenger numbers to recover modestly in fiscal 2027, forecasting growth of around two per cent. Total passenger traffic is expected to increase from approximately 126 million to between 128.5 million and 129 million, provided the situation in the Middle East remains stable, even if oil prices stay elevated. AOT remains confident about the long-term prospects for aviation. The company cited forecasts from the International Civil Aviation Organisation (ICAO), the International Air Transport Association (IATA), Airports Council International (ACI), and global consultants, which project worldwide passenger numbers will rise by around 20 per cent over the next 20 years from the current five billion travellers. Thailand is expected to be among the five countries benefiting most from this growth as much of the expansion is forecast to occur across Asia. To prepare for future demand, AOT is continuing a 300 billion baht infrastructure investment programme across its six airports, aiming to increase annual capacity to 160 million passengers by 2034. The initial investment will be funded through passenger service fee revenue rather than borrowing to avoid increasing public debt. Expansion projects include new terminal developments at Suvarnabhumi Airport, which is expected to accommodate 70 million passengers annually once eastern and southern extensions are completed between 2031 and 2033. Don Mueang Airport will add a third passenger terminal and a Junction Terminal to raise capacity to 40 million passengers a year. Chiang Mai Airport is reviewing plans for a new passenger terminal, while Phuket Airport is designing an expansion scheduled for 2028 to 2031 to ease congestion. Hat Yai Airport is preparing a master plan after exceeding its current terminal capacity, and Chiang Rai Airport is drafting terms of reference for a terminal upgrade project. The ThaiNewsRoom reported that AOT is also restructuring its organisation to improve efficiency. Operating expenses rose by only two per cent during the first two quarters of fiscal 2026, below the typical annual increase of eight to 10 per cent. The company is also expanding non-aviation revenue by developing more than 2,000 rai of land around its airports for hotels, logistics facilities, electric vehicle charging stations and other aviation-related businesses. Picture courtesy of TNR Join the discussion? Already a member? Adapted by ASEAN Now Thainewsroom 28 June 2026
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