Airfares Set to Remain Elevated Amid Sustained Operating Costs and Supply Chain Issues
PUBLISHED: March 7, 2025
Airfares are projected to remain elevated this year due to ongoing operating costs and supply chain disruptions. This trend mirrors the previous year when higher fares significantly boosted the revenues of major airlines operating in Thailand.
The CEO of a leading airline group noted that increased airfares were a key factor behind an improved financial performance in 2024, with the airline achieving substantial revenue growth, totaling 49.4 billion baht—a 20% increase compared to the previous year.
Reports indicate that escalating airport fees and ground handling charges will continue to influence airfares this year, alongside rising travel demand.
The aviation sector is bracing for persistent supply chain challenges, suggesting that airfares will stabilize or rise by no more than 10%.
Last year, the average airfare for a major airline increased by 10% to 1,967 baht, exceeding pre-pandemic levels by 33%.
The airline recorded its first core operating profit since the pandemic, exceeding 3 billion baht in 2024.
With a total of 20.8 million passengers carried and an impressive load factor of 91%, the airline commanded a 40% share of the domestic market.
The airline anticipates welcoming 23-24 million passengers this year, aiming for a 90% load factor. A revenue growth target of 15% is set, bolstered by fleet expansion and a positive fare forecast.
Additionally, another airline has reported a revenue increase to 26 billion baht last year, up 19.8% year-on-year, primarily driven by airline operations. Its average airfare surged by 11.5% to 4,189 baht in 2024.
The president of this airline revealed a passenger revenue figure of 18.1 billion baht, marking a 21.6% increase from 4.3 million passengers and an average load factor of 80.3%. The airline recorded a significant operating profit of 5.4 billion baht, attributed to improving passenger figures and airport-related business.
Facing capacity constraints, this airline aims to serve 4.7 million passengers this year, representing a 9% year-on-year increase. However, growth in seat capacity is anticipated to be around 8% due to delays in aircraft acquisition.
The airline aspires to increase its average load factor to 82%, while maintaining average airfares at approximately 4,200 baht.
Lastly, a representative from another airline indicated that airfare trends for this year are expected to remain stable compared to 2024, with plans to focus on high-potential routes, including new service from Bangkok to Nagoya via Taipei, along with direct flights from Bangkok to Bali.
