SET-listed Bangkok Airways is preparing to increase domestic airfares by 15–20% starting April 1, as the airline seeks to offset rising fuel costs and weakening forward bookings.
The carrier is also considering negotiations with the Civil Aviation Authority of Thailand (CAAT) to extend the current airfare ceiling if operating costs continue to escalate.
Puttipong Prasarttong-Osoth, president of the airline, said fuel expenses accounted for 16% of total costs in 2025, with overall expenditures reaching 20.7 billion baht.
However, ongoing tensions linked to the Middle East conflict have driven jet fuel prices higher, potentially pushing fuel costs to 20% of total expenses this year.
In 2025, the airline reported revenue of 26.1 billion baht and net profit of 3.58 billion baht, representing a 3.4% year-on-year decline.
To manage volatility, Bangkok Airways hedged fuel prices at US$80–90 per barrel for approximately 30% of its consumption. While this strategy has helped cushion the impact of rising oil prices, it has not fully offset the increase in costs, Mr Puttipong said.
Alongside the planned fare adjustments, the airline has gradually increased fuel surcharges on international routes.
According to the International Air Transport Association, the weekly average price of jet fuel for the period ending March 20 surged 106% compared with the previous month.
Mr Puttipong said that if tensions in the Middle East intensify and disrupt operations further, the airline may adopt additional measures. These include reducing routes or flight frequencies on underperforming sectors and seeking regulatory approval to raise domestic airfare caps.
Currently, airfare ceilings for full-service airlines are set at 13 baht per kilometre, while low-cost carriers are capped at 9.4 baht per kilometre.
Some routes are already nearing these limits, including Bangkok–Samui and Bangkok–Phuket, he noted.
Prior to the escalation of the Gulf conflict, the airline had set a cautious outlook for 2026, targeting an average load factor of 80%.
Passenger numbers and total flights are expected to remain stable year-on-year at approximately 4.3 million passengers and 48,000 flights.
Fleet size is also projected to remain largely unchanged at around 25 aircraft, with only two new deliveries scheduled for the end of this year.
Mr Puttipong added that lessons learned during the pandemic have made the airline more cautious about rapid expansion, which can be difficult to reverse during periods of crisis. As a result, current conditions may lead to a revision of its targets for 2026.
As of March 16, forward bookings for the April–September period increased by 1% year-on-year. However, bookings for the second quarter declined by 3%, largely due to weaker demand on international routes.
In April, forward bookings at Samui Airport fell by 4%, with domestic bookings dropping 19% and international bookings decreasing by 10%.
Mr Puttipong also warned that the continued suspension of operations by Middle Eastern carriers could negatively impact Bangkok Air Catering, a key business unit whose primary clients are airlines from the region.
Bangkok Air Catering reported revenue growth of 19% last year, reaching 1.29 billion baht, after serving more than 7.19 million meals to 31 airlines.
