Bangkok Airways hikes ticket prices amid rising oil costs
Bangkok Airways is raising ticket prices and adding fuel surcharges from April 1 as oil prices climb to between US$170 and US$180 per barrel. The airline is hedging 30% of its fuel costs and is keeping a close watch on the situation, warning that its annual plan could need revising if prices stay elevated.
CEO Puttipong Prasarttong-Osoth said domestic fares will rise by 15 to 20% starting April 1, though prices will stay within the government-approved ceiling. For international routes such as flights to the Maldives, a fuel surcharge of between US$50 and US$60 has already been applied.
The airline has hedged roughly 30% of its fuel at between US$80 and US$90 per barrel to manage costs for the rest of the year. Puttipong said conditions were looking positive at the start of the year, but turbulence in late February prompted a review of growth targets.
“If the situation persists for two to three months, annual goals might need adjustment since fuel accounts for 16% of operational costs,” he said.
If global oil prices remain high, the airline may need to restructure its cost management or request a fare ceiling adjustment from Thailand’s Civil Aviation Authority.
Puttipong, who also serves as president of the Airlines Association of Thailand, has proposed that the government reduce the fuel excise tax from roughly five baht per litre to ease the burden on consumers.
Bookings
Despite the pressures, advance bookings for the Songkran period in April remain stable and have not been affected by tensions in the Middle East. As of March 16, bookings for travel between April and September this year were up 1% compared to the same period last year. Second-quarter bookings dipped 3%, while third-quarter bookings grew 9%. The European tourist market continued to grow last year, rising an average of 11%.
The International Air Transport Association recorded 3.8% growth in global passenger traffic in January, with the Asia-Pacific region growing 4.4%.
Airport and Fleet Expansion
Bangkok Airways will begin renovating Samui Airport in the second quarter of this year to increase annual capacity to six million passengers. The work will expand commercial areas and add boarding gates, with the project expected to be complete by 2030. Trat Airport has had its runway extended to 2,000 metres, and construction of taxiways and parking for three jet aircraft, including the Airbus A320, is expected to wrap up within a year.
The airline expects to operate between 22 and 26 aircraft this year, comprising one Airbus A320, eleven Airbus A319s, and ten ATR 72-600s. Twelve new ATR 72-600s are on order, with the first two due for delivery in the fourth quarter of this year, continuing through 2028.
Financials
Deputy CFO Liphapat Leelavanich reported that Bangkok Airways posted revenue of 26.067 billion baht last year with a net profit of 3.5803 billion baht. Subsidiary Bangkok Air Catering generated 1.289 billion baht, up 19%, serving 7.19 million meals. Ground handling arm BFS Ground reported 3.481 billion baht, up 3%, servicing over 77,123 flights. BFS Cargo saw revenue rise 6% to 2.795 billion baht, handling over 508,784 tonnes of cargo.
Sales and Marketing
Director of Major Clients and Ancillary Revenue Komkrit Ngamwongwiroj outlined the airline’s sales strategy, targeting 26% of sales through its website and 74% through other channels. Europe remains the top revenue source at 40.3%, followed by Thailand and ASEAN at 33.5%, and the Americas at 8.2%.
Priority markets include Russia, the Middle East, and Europe, with high-growth potential seen in Kazakhstan, Saudi Arabia, China, and India. The airline plans to expand direct connections through APIs, NDCs, and Direct Connect to reach travellers using metasearch engines and online travel agencies, including an expanded collaboration with Kayak.
Codeshare partnerships with Thai Airways, LOT Polish Airlines, and Condor have been established to grow European inbound traffic. The airline has also partnered with Muang Thai Insurance and Allianz Partners Thailand to offer travel insurance products directly through its website.
On the sports tourism front, the Bangkok Airways Boutique Series 2026 will feature half-marathon events in Trat, Samui, Sukhothai, and Chiang Mai.
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