Jet fuel costs force Korean budget airlines to cut Thai flights
South Korean budget airlines are cutting and suspending flights to Thailand as rising jet fuel costs, worsened by the ongoing conflict in the Middle East, squeeze low-cost carriers on the route.
T’way Air announced via Facebook that its daily service between Suvarnabhumi and Incheon airports will continue only until May 9, after which it will be reduced to twice weekly through July 14. The airline had separately halted all flights between Bangkok and Daegu until July 15 and raised its passenger fuel surcharge from 1,900 baht to 2,850 baht.
T’way Air also plans to place some cabin crew on unpaid leave in May and June as part of emergency management measures. The airline said the furlough scheme will involve volunteers only, according to a report by Joongang Ilbo.
Air Busan, another low-cost carrier, has cancelled six flights between Bangkok and Busan on May 13, 16, 20, 23, 27, and 30. The airline previously raised its fuel surcharge from 2,000 baht to 2,700 baht from April 1, citing volatility in jet fuel prices.
Other budget carriers have yet to announce changes to their Thai routes, though South Korean media reports suggest all low-cost airlines in the country are facing similar pressures, including on routes to the United States and Vietnam, reported Bangkok Post.
In another separate news, Thai Airways has raised fares by 10% to 15% after jet fuel costs surged from US$80 per barrel to US$220 per barrel amid Middle East unrest.
CEO Chai Eamsiri said the airline can still operate routes outside affected areas, but may raise fares further if fuel costs continue to climb. Advance bookings are down about 10% compared with last year.
Chai added that the board will meet this week to discuss cost-cutting measures, and that investment plans will be paused to preserve cash.
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