Local airlines are continuing to scale back capacity by merging less profitable flights into remaining services, as they grapple with rising jet fuel costs. At the same time, Japan Airlines and All Nippon Airways have announced a sharp increase in fuel surcharges, with Thailand-bound fees rising from roughly 3,000 baht to around 6,000 baht.
The Civil Aviation Authority of Thailand (CAAT) has received updated flight schedules from most carriers operating in the country and expects to take about a week to assess the full impact of rising fuel prices, according to deputy director Sarun Benjanirat.
Initial data indicates a notable reduction in flights across both full-service and low-cost airlines in May and June. Many carriers had previously stabilised fares using contracted fuel rates in March and April, but those supplies have now been exhausted, forcing airlines to absorb market prices that have more than doubled from around $85 per barrel.
Data from the International Air Transport Association shows global jet fuel prices reached $184.63 per barrel in the week ending April 17, marking a 105% year-on-year increase.
To ease the financial burden, CAAT is working with stakeholders, including airports, to support airlines by extending payment terms from 30 days to 60–90 days and reducing certain fees to help maintain flight operations and limit passenger disruption.
Mr Sarun noted that lessons from the pandemic highlight the risks of capacity cuts, warning that restoring services can be difficult when demand rebounds quickly. A gap between supply and demand could also drive ticket prices higher, similar to trends seen after Covid-19.
Flight services from the Middle East remain below pre-pandemic levels. Emirates and Etihad Airways have resumed about 60% of their normal operations to Thailand, while Qatar Airways is operating at around 50%.
Meanwhile, Japanese carriers are raising fuel surcharges for tickets issued in May and June. Japan Airlines will increase its surcharge on Japan–Thailand routes from ¥15,500 to ¥29,600 per flight (about 3,128 to 5,974 baht), bringing a round-trip surcharge to nearly 12,000 baht. All Nippon Airways has similarly raised its surcharge from ¥16,300 to ¥29,000 (around 3,286 to 5,846 baht).
Pattaraanong Na Chiangmai of the Tourism Authority of Thailand said the combination of reduced capacity by Thai low-cost airlines and higher fares from Japanese carriers could weigh on travel demand in the coming months. Authorities are closely monitoring seat availability and hope the changes will not disrupt travellers who have already booked trips for the upcoming May Day holiday.