Thailand’s Civil Aviation Authority (CAAT) has reported that airline operations have declined to just over 60% of pre-crisis levels, largely due to soaring jet fuel prices driven by geopolitical tensions in the Middle East. Since escalation in February-March 2026, airlines have canceled approximately 1,900 flights, reflecting the deep impact of the regional conflict on air travel.
The conflict around the Strait of Hormuz, a crucial route for global energy supplies, has caused a sharp rise in fuel prices, with the average reaching US$181.57 per barrel in March 2026. This increase has posed a significant challenge for airlines, as fuel costs now constitute 25-40% of their operating expenses.
Impact on Thai Airlines and Global Aviation
Airlines based in Thailand are attempting to mitigate financial impacts by reducing schedules and absorbing higher costs. However, the ongoing geopolitical situation continues to weigh heavily on airline capacity, passenger demand, and economic confidence. Industry observers warn that further volatility in fuel prices may force airlines to increase fares or impose surcharges, potentially dampening travel demand further.
As the global energy and geopolitical landscape remains uncertain, airlines and regulators are closely monitoring developments that could affect future flight operations and energy security, especially in the Asia-Pacific region.
