The aviation industry is facing challenges due to a surge in jet fuel prices, prompting industry executives to advocate for cost relief measures. Airlines such as Thai Airways plan to pass increased fuel costs—leading to a 10-15% rise in airfare—onto consumers, aiming to sustain tourism during the busy holiday season. Meanwhile, Vietnam Airlines is considering route suspensions in April stemming from limited fuel supplies, affecting 23 flights weekly.
Yuthasak Supasorn, chairman of Thailand's Industrial Estate Authority, highlighted that higher fares might cause travelers to postpone trips or seek alternative destinations. Prior to regional conflicts, demand for jet fuel had increased markedly, yet disruptions caused by conflict between the US-Israel alliance and Iran have impeded energy supplies, impacting Thailand as a significant oil importer. These volatile energy prices contribute to inflation and rising living costs, leading to economic concerns if tensions persist beyond three months.
Industry leaders have called for cost relief strategies, including reducing airport operational costs and bolstering energy reserves reassurance. Thai Lion Air reports a 70% increase in jet fuel prices since early March and is monitoring demand closely ahead of Songkran. Airline associations have suggested possible measures like eliminating excise taxes on jet fuel and postponing airport fee hikes to mitigate financial strain. These efforts aim to prevent additional burdens on passengers and to maintain stable air travel amid ongoing economic volatility.
