Airfare prices are expected to remain high this year, influenced by rising operational costs and ongoing supply chain disruptions, continuing the trend from last year when increased fares significantly boosted the revenues of major airlines in Thailand.
Santisuk Klongchaiya, chief executive of Asia Aviation, which holds a majority in Thai AirAsia, highlighted that the hike in airfares was a key factor in the airline’s financial improvement in 2024.
Thai AirAsia reported a 20% increase in revenue from sales and services, reaching 49.4 billion baht.
The report from the airline indicates that continued increases in airport charges and ground handling fees, coupled with robust travel demand, will keep airfares high this year.
Disruptions in the aviation industry’s supply chain are expected to continue, leading to stable or slightly increased airfares, with a potential rise capped at 10%.
Last year, Thai AirAsia’s average airfare rose by 10% year-on-year to 1,967 baht, which was 33% higher than the rates in 2019.
In 2024, the airline posted its first positive core operating profit since the pandemic began, totaling over 3 billion baht.
Thai AirAsia served 20.8 million passengers last year, achieving a 91% load factor and capturing 40% of the domestic market.
Mr. Santisuk announced that the airline aims to serve between 23 and 24 million passengers this year, targeting a 90% load factor. Thai AirAsia expects a 15% growth in revenue from sales and services, spurred by an increase in its fleet and positive fare forecasts.
Meanwhile, Bangkok Airways reported revenue of 26 billion baht last year, a 19.8% increase year-on-year, primarily driven by its airline operations. The company’s average airfare jumped by 11.5% to 4,189 baht in 2024.
Puttipong Prasarttong-Osoth, president of Bangkok Airways, reported that passenger revenue reached 18.1 billion baht, up 21.6% from the previous year, with 4.3 million passengers and an 80.3% load factor.
The company’s operating profit soared by 79% year-on-year to 5.4 billion baht, boosted by increased passenger revenue and airport business.
Facing limited capacity, Bangkok Airways plans to transport 4.7 million passengers this year, a 9% increase from last year. However, seat capacity growth is projected at only 8% due to delays in acquiring new planes.
The airline aims to improve the average load factor to 82%, while keeping the average airfare around 4,200 baht.
Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, mentioned that airfare rates are expected to remain consistent with 2024 levels.
The airline is adjusting its strategy to focus on more promising routes, including flights from Bangkok to Nagoya via Taipei and direct flights to Bali from Bangkok.