Jet fuel boom: Thailand’s aviation set for sky-high growth

Thailand’s aviation sector is ready to soar, fuelled by a surge in air travel and jet fuel demand, according to Bangkok Aviation Fuel Services Plc (BAFS). The refuelling giant, which serves Suvarnabhumi and Don Mueang airports, is seeing a bright future as the aviation industry bounces back from the pandemic slump.

BAFS President ML Nathasit Diskul revealed the company’s expected 18% year-on-year revenue growth, bringing in a staggering 3.6 billion baht this year.

“One of the key reasons for this trend is the increase in air travel, which has driven up jet fuel consumption.”

Between January and June, Thailand’s jet fuel usage skyrocketed by 17%, reaching an impressive 15.7 million litres per day, up from 13.5 million litres, the Department of Energy Business reported. A booming tourist season, visa-free entry, and an uptick in flights over extended holidays have all contributed to this surge.

Looking ahead, BAFS projects a 16% jump in jet fuel sales in 2024, expecting to pump 5 billion litres, up from last year’s 4.3 billion litres. With the aviation sector picking up steam, the Bank of Thailand also noted a rise in foreign tourists in July, with 3.1 million arrivals, up from 2.7 million in June.

Visitors from Malaysia, China, Russia, and Europe helped drive these numbers, although Middle Eastern and Indian tourists slightly dipped.

Airports of Thailand (AoT) has ambitious plans to upgrade Suvarnabhumi Airport’s capacity to accommodate 80 million passengers annually by 2031. This follows the opening of a new satellite terminal last year, boosting capacity from 45 million to 60 million.

AoT President Kerati Kijmanawat stressed the company’s goal to see Suvarnabhumi among the top 20 airports worldwide within five years, reported Bangkok Post.

In related news, the Finance Ministry appears unlikely to extend the jet fuel excise tax reduction, which was initially introduced during the Covid-19 pandemic, stated Deputy Finance Minister Julapun Amornvivat. Julapun addressed a recent proposal by a group of budget airlines seeking further reductions in the jet fuel excise tax. He remarked that such requests are not of immediate importance.