Aviation has become the frontline sector grappling with soaring fuel prices, and executives want cost relief measures to ease costs for travellers to maintain tourism demand during the crucial holiday period.
In response to rising fuel costs, executives at Thai Airways said it is preparing to pass costs on to consumers, resulting in airfare increases of 10-15% due to higher fuel surcharges.
Vietnam's national carrier Vietnam Airlines reportedly plans to temporarily suspend several routes from April, totalling 23 flights per week, due to limited fuel supplies.
"Higher airfares may lead travellers to delay trips, shorten their stays, or choose alternative destinations with less impact," said Yuthasak Supasorn, chairman of the Industrial Estate Authority of Thailand.
Prior to the Middle East conflict, demand for jet fuel recorded the strongest increase among all transport modes, rising 10.6% in early 2025 and projected to grow 14.1% for the whole year due to tourism recovery.
However, the war between the US-Israel alliance and Iran disrupted global energy supplies, affecting Thailand as a major oil importer, he said.
Volatile energy prices raise inflation, living costs and transport expenses, as the National Economic and Social Development Council warned a conflict lasting more than three months could stall the economy, with each oil price uptick reducing GDP by 0.02%.
Mr Yuthasak said cost relief measures for airlines are necessary during this crucial period to avoid placing additional burdens on passengers, which could affect travel sentiment during the Songkran holiday.
Such measures may include reducing certain airport operational costs, as well as reassuring travellers that the country's energy reserves remain sufficient for daily needs.
"The aviation industry is highly sensitive to energy prices as fuel is its largest operating cost," he said.
JET FUEL PRICE SURGE
Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, said the jet fuel price has increased 70% since the beginning of this month.
Although the airline is maintaining all scheduled flights this month to avoid any impact on customers, it will reassess the situation in the final week of March before finalising its schedule from April, she said.
The impact of soaring fuel prices is expected to last for at least 1-2 months, prompting the airline to monitor travel demand more closely, particularly during the Songkran holiday.
"It is too early to see a clear picture for air travel during the Songkran holiday, as most locals are still waiting to see how the situation develops, especially regarding energy prices and the cost of living," said Mrs Nuntaporn.
Thai Lion Air may need to consider measures to stay afloat, as other airlines have done, such as increasing fuel surcharges or reducing flights to match actual demand in April, she said.
Earlier this month, the Airlines Association of Thailand proposed the government consider cutting the excise tax on jet fuel.
As this measure may take longer to implement, she said more immediate efforts should be prioritised to help lower costs, such as postponing planned increases in operational fees at major airports.
