Despite a two-week ceasefire between the US and Iran, Thai airlines are continuing to adjust their summer flight strategies as travel demand remains subdued amid lingering concerns over the oil crisis.
Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, said the airline has revised schedules on several domestic and international routes following the Songkran holiday, largely due to rising operating costs.
The ceasefire, announced by US President Donald Trump and tied to the reopening of the Strait of Hormuz, has helped lift global markets and ease oil prices. However, uncertainty persists.
“Fuel prices may decline, but likely to a new baseline that remains higher than before. Airlines still need to align capacity with demand under these conditions,” she said.
Jet fuel prices have surged by 90–100% over the past month, significantly increasing airline costs and dampening travel demand. In response, Thai Lion Air has raised fuel surcharges by around 5–10%, depending on the route.
Thailand has so far avoided fuel shortages, allowing airlines to continue refuelling domestically. This contrasts with Vietnam, where heavy reliance on imports has led to supply constraints, forcing carriers such as Vietnam Airlines and VietJet to scale back operations.
Pinyot Pibulsonggram, vice-president of commercial and customer service at VietJet Thailand, said the airline has not faced similar fuel challenges, as it primarily refuels within Thailand.
He noted that VietJet Thailand has reduced flight capacity for the summer season in line with its usual low-season strategy, keeping overall capacity comparable to last year. The airline has also introduced new routes, including additional destinations in Vietnam.
However, higher fuel costs continue to squeeze margins, prompting fare increases of 10–15%. The airline is closely monitoring the Middle East situation and may adjust capacity further, particularly in June when demand typically softens, including potential reductions on routes such as India.
Thai carriers are also participating in a Civil Aviation Authority of Thailand initiative to offer promotional fares during the Songkran holiday to help stimulate travel.
Ms Nuntaporn said Thai Lion Air continues to see solid inbound bookings during the holiday period, while offering more competitive fares for post-Songkran travel.
Mr Pinyot added that bookings for April and May remain strong across both domestic and international routes, although demand for June is still uncertain.
Another airline executive, speaking anonymously, said bookings dropped by double digits following the escalation of tensions in the Middle East last month, prompting airlines to cut capacity.
The source added that while costs have risen sharply, airlines may not be able to increase fares at the same pace, leaving forward bookings for the rest of the year unclear. As a result, tourism is unlikely to return to 2025 levels in the near term.