Despite ongoing complaints over high airfares to flood-affected Hat Yai, the average domestic ticket prices in Thailand continued to decline in 2025. Low-cost carriers shifted focus from underperforming Chinese routes to domestic flights to avoid competition with the more established Chinese state-backed airlines.
Local residents expressed outrage over a nearly 10,000 baht fare for Bangkok-Hat Yai flights, prompting the Civil Aviation Authority of Thailand (CAAT) to investigate. The authority stated that the fare for this route is capped at 7,266 baht for low-cost carriers and 10,049 baht for full-service airlines.
Puttipong Prasarttong-Osoth, president of Bangkok Airways, reported that the airline’s average fare in the third quarter decreased by 2.2% year-on-year to 4,115.3 baht. For the first nine months, the average fare dropped 1.1% to 4,178.9 baht. The decline is mainly attributed to intensified competition among local airlines, which offered discounts to attract passengers, leading to increased supply and lower yields.
In the same period, Bangkok Airways experienced a slight revenue decrease of 0.1%, mainly due to a 405 million baht reduction in fare income, down 2.9%. Thai AirAsia’s average fares fell 12% in the third quarter, reaching 1,633 baht, amid weak demand from international tourists for both international and domestic trips.
Wutthiphum Jurangkool, former CEO of Nok Air, noted that while Nok Air maintains a 25% share of the domestic market (compared to Thai AirAsia’s 37%), ticket revenue continues to decline as more low-cost carriers shift their focus to domestic routes. This trend mirrors the global airline market, which saw a 5% drop in airfares this year. Nok Air’s average domestic fare in 2025 is around 1,300 baht.
Wutthiphum explained that many airlines have struggled to achieve healthy load factors on Chinese routes, as capacity increased with new aircraft deliveries initially planned for international markets. These aircraft were redirected to domestic routes to optimize existing fleets. Despite the return of Chinese travelers to Thailand following recent diplomatic tensions with Japan, Chinese airlines are expected to benefit more than Thai carriers due to significant government subsidies supporting Chinese state-owned airlines and tour operators, aimed at boosting traffic.
He added that the weak Chinese market and strong competition have led many low-cost carriers to reduce or cease services to China, resulting in excess supply and lower airfares during the third quarter. Nok Air halted all international flights, including those to China, amid safety concerns raised by CAAT, while Thai Lion Air cut Chinese routes from 35 to 10.
On the international front, Mr. Puttipong highlighted that the European market supported the growth in international passenger numbers during the first nine months of 2025, accounting for 82% of total passenger revenue. Passenger numbers from Germany and the UK increased by 15% and 11%, respectively, while revenue from sales in Europe and the Middle East grew by 4%, representing over half of international earnings. In contrast, sales from Asia and Oceania declined by 22%.
Demand remains strong for routes to Samui, with Bangkok Airways’ hub at Surat Thani Airport handling 66% of all passengers—up 4% year-on-year—and projected to serve 2.8 million passengers in 2025. However, the airline adjusted some routes in the third quarter to match shifting demand. Flights from Bangkok to Phnom Penh were reduced from three to one daily, and services between Bangkok and Lampang, as well as Lampang to Mae Hong Son, were cut or canceled.
During the first nine months of 2025, Bangkok Airways earned 19.9 billion baht and posted a net profit of 3.13 billion baht from transporting 3.24 million passengers.