THAI Airways International Plc is set to raise domestic airfares following the implementation of a new jet-fuel tax that will drive up costs.
“The new tax definitely reflects operating costs, same as other airlines. THAI is considering increasing domestic airfares. Our commercial department is monitoring and working on that,” Charamporn Chotikasthira, the airline’s president said Tuesday.
The extra charges will be based on distance and passenger volume and are likely to be similar to other airlines.
Earlier, budget airlines including AirAsia and Nok Air announced a Bt150 extra fuel surcharge. Bangkok Airways announced that it was necessary to raise its domestic fares by Bt200 from February 8.
Charamporn said he would leave the airline on February 10, after serving as president for two years and two months, but realised that rehabilitation efforts would be set back six months from the initial plan.
However, overall operations had improved over the last six months, such as online bookings, which have risen from 21 per cent (of total bookings) last year to 22 per cent this month and were expected to rise to 23 per cent by April.
Passenger loads in January were 80 per cent – up from 77 per cent in January 2016. And seat capacity had risen due to more aircraft arrivals and revision of routes.
This year, THAI will put more effort on boosting passengers from India and Indochina.