AOT: Passenger charge hike won’t dent demand

AOT: Passenger charge hike won’t dent demand

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Passengers queue up to board a flight at Suvarnabhumi airport, Samut Prakan province. (Bangkok Post file photo)
Passengers queue up to board a flight at Suvarnabhumi airport, Samut Prakan province. (Bangkok Post file photo)

Airports of Thailand Plc (AOT) has acknowledged that its decision to raise the international passenger service charge (PSC) to 1,120 baht per traveller will push up airfares, but expressed confidence it will not deter travel demand.

The new rate, up from 730 baht, will take effect on June 20 across all six airports operated by AOT.

AoT president Paweena Jariyathitipong said on Wednesday the increase had been thoroughly studied, acknowledging it would inevitably be reflected in ticket prices. However, she said it is unlikely to influence passengers’ choice of destination, citing both AOT studies and supporting research.

“Regarding the PSC, AOT has carefully considered and studied the matter in accordance with International Civil Aviation Organisation (ICAO) standards, and all cost structures are based on established principles and factual data,” she said.

“We have no concerns and reaffirm our commitment to accelerating airport improvements so that services are enhanced and passengers feel the fees they pay are worthwhile,” she added.

Ms Paweena said fluctuations in airfares were more heavily influenced by fuel prices, noting that the airport agency has already prepared measures to cope with potential impacts from global conflicts.

The increase marks the steepest PSC hike in nearly two decades, prompting questions about whether passengers are paying for genuine infrastructure upgrades or wider financial pressures within the system. While additional funding for airport expansion is widely seen as necessary, concerns persist over whether higher charges will be matched by tangible improvements in service quality.

Ms Paweena reiterated that the higher PSC revenues would be used solely for airport development, not to compensate for any income loss related to the termination of duty-free concession contracts by King Power.

Suvarnabhumi airport currently serves about 46 million passengers annually. AOT plans major expansion projects, including a 12-billion-baht eastern terminal expansion and a 20-billion-baht ground improvement project for a future southern terminal.

Additional projects include a 30-billion-baht third-phase expansion of Don Mueang airport and a 10-billion-baht first-phase expansion of Phuket airport. These developments are expected to raise total capacity across AOT’s six airports to 180 million passengers by 2034, according to Ms Paweena.

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