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Thai Airlines Seek Jet Fuel Tax Cut

Proposals aim to reduce domestic airfares and attract 200,000 more visitors by 2026

BANGKOK, THAILAND – The Airlines Association of Thailand (AAT) submitted a four-point proposal to the government calling for drastic reductions in jet fuel taxes, delayed airport fee hikes, and free domestic flights for foreign tourists in 2026.

Fuel tax reduction designed to lower ticket costs

On 15 January 2024 in Bangkok, the AAT asked the government to reduce the jet fuel tax from 4.726 Baht per litre to 0.20 Baht. The measure would decrease average domestic ticket prices by about 100 Baht per flight.

“That would reduce ticket prices by an average of 100 Baht per flight,”

said Airlines Association of Thailand, official statement.

Between January and May 2026, airlines could add 3.8 million new seats, generating roughly 22 billion Baht (USD 550 million) in additional economic activity, according to the association.

Free domestic flights for international arrivals

The AAT also announced a campaign titled “Buy international, fly domestic free” for 15 January to 12 April 2026. Tourists purchasing an international ticket to Thailand within that period would be eligible for one free domestic flight.

The group projected 200,000 more international visitors and expected 8.5 billion Baht (USD 212 million) in revenue boosts from the campaign period.

Postponement of airport fee increases

Planned increases for the Air Navigation Services Charges (ANSC) and Passenger Service Charges (PSC) were proposed to be postponed at several airports. The Don Mueang Airport in Bangkok would delay fee rises until 2027, and airports in Chiang Mai, Phuket, and Krabi could defer them until 2028.

“This relieves both airlines and passengers alike,”

said Airlines Association of Thailand, official statement.

The organisation estimated that these measures would support greater connectivity and stimulate route expansion across regional destinations.

Government review and timeline

Transport Minister Phiphat Ratchakitprakarn accepted the plan positively on the same day in Bangkok, stating that his ministry would evaluate the proposals within 30 days.

“I will consult all relevant authorities,”

said Phiphat Ratchakitprakarn, Minister of Transport.

Following the review, detailed implementation plans for each recommendation would be issued. The Thai government confirmed its aim to strengthen the competitiveness of the national aviation sector through cooperation with private stakeholders.

Legal reform to align with global standards

The AAT further called for revisions to national aviation laws to improve oversight and transparency.

“We need more transparency on the charges,”

said Airlines Association of Thailand, official statement.

The proposal included faster procedures for aircraft import clearances and the creation of a three-part working committee involving representatives from industry, government, and civil society to oversee legal adjustments.

Summary of proposed measures

Kerosene tax cut from 4.726 Baht to 0.20 Baht per litre
100 Baht lower average fare per domestic flight
3.8 million extra airline seats from Jan–May 2026
22 billion Baht additional revenue projected
Free domestic flights for tourists arriving 15 Jan–12 Apr 2026
Fee delays at Don Mueang (to 2027) and regional airports (to 2028)

The Ministry of Transport stated the review outcome would determine whether the plan proceeds before mid-2024 implementation discussions.

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