Airfares are expected to remain high this year based on rising operating costs and supply chain disruptions, similar to last year when higher fares drove the revenue of major airlines operating in Thailand.
Santisuk Klongchaiya, chief executive of Asia Aviation, the majority shareholder of Thai AirAsia, said higher airfares were the main contributor to an improving financial performance in 2024, with the airline securing 49.4 billion baht in revenue from sales and services, up 20% year-on-year.
According to the airline’s report, rising costs from airport charges and ground handling fees would continue to affect airfares this year, along with high travel demand.
The aviation industry’s supply chain disruption is expected to persist, resulting in stable airfares or an increase of no more than 10%.
Last year the average airfare on Thai AirAsia increased by 10% year-on-year to 1,967 baht, surpassing the 2019 level by 33%.
The airline recorded its first positive core operating profit since the pandemic, earning more than 3 billion baht in 2024.
Thai AirAsia carried 20.8 million passengers with an average load factor of 91%, earning a 40% share of the domestic market.
Mr Santisuk said the airline targets 23-24 million passengers this year with a 90% load factor. Thai AirAsia projects 15% growth in revenue from sales and services, driven by fleet expansion and a favourable fare outlook.
Meanwhile, Bangkok Airways reported revenue of 26 billion baht last year, up 19.8% year-on-year, mostly driven by airline business. Its average airfare soared by 11.5% to 4,189 baht in 2024.
President Puttipong Prasarttong-Osoth said passenger revenue was 18.1 billion baht, up 21.6% year-on-year, from 4.3 million passengers and an average load factor of 80.3%. The company reported an operating profit of 5.4 billion baht, a 79% increase, attributed to improving passenger revenue and airport-related business.
Amid capacity constraints, Bangkok Airways targets 4.7 million passengers this year, up 9% year-on-year. However, in terms of seat capacity, growth is expected to be only 8% due to a hiccup in plane acquisition.
The airline wants to upgrade the average load factor to 82%, while maintaining average airfares at around 4,200 baht.
Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, said the airfare trend this year should be maintained at the same level as 2024. The airline plans to shift to routes with higher potential, such as flights from Bangkok to Nagoya via Taipei, and direct flights from Bangkok to Bali.