Thai Airways CEO Chai Eamsiri stated that developments in the Middle East are significantly impacting the aviation sector. Jet fuel prices have reportedly risen from around $80 per barrel to as high as $220, with the increase being reflected in ticket prices by approximately 10% to 15% through dynamic pricing mechanisms.
To manage cost pressures, the airline has suspended non-essential spending and cabin upgrade programs. It was also noted that bookings on European and Australian routes during the Songkran period are below last year’s levels.
Despite the challenges, Thai Airways management emphasized that the company maintains strong cash reserves and continues to advance strategic projects such as the U-Tapao maintenance, repair, and overhaul (MRO) center.
Across the industry, rising fuel costs are viewed as unsustainable, potentially leading to higher ticket prices for passengers or reduced demand.
