BANGKOK, THAILAND – Public anger over a nearly 10,000-baht flight to Hat Yai contrasted with data showing that domestic airfares in Thailand had been falling amid an intensifying airline price war.
Price outcry over Hat Yai ticket
A flight from Bangkok to flood-hit Hat Yai that cost almost 10,000 baht (about 250 euros) triggered widespread outrage and prompted the intervention of the Civil Aviation Authority of Thailand (CAAT). The official price ceiling stood at 7,266 baht for low-cost carriers and 10,049 baht for full-service airlines, leaving the disputed fare just below the upper limit and in a legal grey area. However, this isolated case masked a broader trend of mounting pressure on domestic ticket prices.
Statistics show steady decline in fares
Bangkok Airways reported an average ticket price of 4,115 baht in the third quarter, a decline of 2.2 percent. Over the first nine months of the year, the carrier’s average fare fell by 1.1 percent to 4,179 baht, driven by fierce displacement competition among local airlines. Even Thai AirAsia recorded a 12 percent drop in its third-quarter average fare, down to just 1,633 baht.
Airlines retreat from China to domestic routes
Behind the price pressure was a strategic shift by many low-cost carriers, which cut or sharply reduced their unprofitable routes to China.
“In view of a weak Chinese market and strong Chinese competition, many low-cost airlines reduced their services to China.”
said Wutthiphum Jurangkool, former Nok Air chief. The freed-up aircraft were redeployed to domestic routes, creating an oversupply of seats and pushing prices down, with Nok Air’s average fare in 2025 at just 1,300 baht.
State-backed Chinese giants squeeze Thai carriers
More than 50 percent of major Chinese airlines were state-owned, and local governments heavily subsidised these carriers and tour operators to stimulate traffic. Thai private airlines were unable to compete with this financial firepower, forcing a pullback from the Chinese market. Thai Lion Air reduced its China routes from 35 to only 10, while Nok Air halted all international flights, shifting capacity back to the domestic market.
European demand and Koh Samui routes support earnings
While the Asian market shrank, the European segment grew strongly, with passenger numbers from Germany and the United Kingdom rising by 15 and 11 percent respectively. For Bangkok Airways, the route to Koh Samui remained a safe haven, and Surat Thani airport, the gateway to the island, recorded a 4 percent increase in passengers. Overall, the airline earned 19.9 billion baht in the first nine months, with a net profit of 3.13 billion baht, showing that the domestic market could still be profitable for some players despite falling prices.
Overcapacity keeps tickets under pressure
A key uncertainty was how long the price war would continue, as many carriers had received new aircraft ordered before the tourism downturn. These planes had to stay in the air, and as long as overcapacity persisted on domestic routes, ticket prices would remain under pressure. For Thai holidaymakers and foreign tourists this was good news, but for airlines it meant an intense struggle for every booking.