BANGKOK, THAILAND – Thailand’s airlines pressed for a temporary reduction in the excise tax on jet fuel for domestic flights to offset rising operating costs and stabilize airfares.
The industry proposal
The initiative came from the Airlines Association of Thailand (AAT), which put forward the idea of a time‑limited easing of jet fuel taxation on domestic routes. According to the association, the move was meant to cushion carriers from the impact of volatile energy markets.
From the AAT’s perspective, the measure was designed to prevent sharp jumps in ticket prices in an environment of geopolitical tensions and fluctuating oil prices. Industry representatives argued that predictable costs were essential for planning capacity and pricing on key routes.
Who is behind the push
AAT president Puttipong Prasarttong‑Osoth said the proposal followed discussions among top executives of the association’s six member airlines.
“The proposal was preceded by talks among the top management of the six member airlines,”
said Puttipong Prasarttong‑Osoth, president of the AAT.
The talks involved Bangkok Airways, Thai AirAsia, Thai AirAsia X, Nok Air, Thai Lion Air and Thai Vietjet Air. Together, these carriers formed a significant share of Thailand’s domestic air travel market.
Jet fuel as main cost driver
Airline leaders pointed out that rising fuel expenses were among the heaviest burdens for the aviation sector. They highlighted jet fuel as a key factor in determining final ticket prices on many domestic routes.
With a reduced excise tax on domestic jet fuel, they argued, airlines could keep tickets more affordable while stabilizing day‑to‑day operations. This, in turn, was seen as important for maintaining service frequency and reliability across the network.
Why Pattaya closely watches stable airfares
For tourism destinations such as Pattaya, stable airfares were considered crucial because demand was heavily influenced by access via air travel. Many domestic and international visitors relied on flights as the first leg of their journey to the resort city.
Because Pattaya did not have a major commercial airport of its own, many guests travelled via Suvarnabhumi Airport or U‑Tapao Rayong‑Pattaya International Airport before continuing on to the beach destination. Consistent flight prices to these gateways were seen as an important factor in sustaining visitor flows.
Demand outlook and holiday travel
Industry observers expected that constant airfares could help sustain travel interest in Pattaya and other major destinations, especially during peak periods. They viewed stable pricing as a way to reduce uncertainty for both travellers and tourism businesses.
Bookings tended to react sensitively to sudden price increases, particularly during holiday seasons. For this reason, airlines and the wider tourism sector were keen on the most reliable conditions possible for domestic travellers and inbound visitors.
Songkran 2026 – more flights and lower fare caps
In parallel, carriers prepared for the highly sought‑after Songkran travel season in April 2026. The holiday period was expected to generate strong demand across domestic routes.
Airlines planned to add extra flights and reduce the maximum fare caps for tickets during the holidays by up to 30 percent to accommodate the anticipated surge in passengers. The combination of more capacity and lower caps was aimed at easing pressure on prices during the peak.
Boosting tourism and regional economies
According to industry views, the mix of a proposed tax cut and expanded flight offerings was intended to support tourism and regional economic cycles. Sector representatives framed the idea as a tool to keep people and spending moving across the country.
Destinations beyond Bangkok were also expected to benefit, particularly those that depended heavily on a steady stream of domestic and international visitors, including Pattaya. The measures were seen as a way to safeguard these flows amid uncertain energy markets.