While THAI appears resilent, Mr Dithanop says certain airlines may post losses as surging jet fuel prices continue to weigh on sector earnings. Reuters
Thai airlines, which reported mixed financial results in the first three months of 2026, will remain under pressure in the second and third quarters from the oil price spike as the uptick in airfares and fuel surcharges are insufficient to cover the surge in costs.
The tourism and aviation outlook this month reflects the impact of the US-Israeli war with Iran, with elevated jet fuel prices continuing to weigh on airlines, particularly low-cost carriers, which face the highest risk, said Dithanop Vattanawakin, aviation analyst at Krungsri Securities.
Nationwide passenger and flight volumes contracted by 7% year-on-year in early May, deteriorating from a 1% contraction in April, dragged down by domestic routes, which shrank by more than 11%.
Airports of Thailand (AoT) reported passenger volumes dropped by 5% in early May, worsening from a 1% decline in April, with the downturn driven by a 10% dip in domestic routes, consistent with nationwide aviation statistics reported by the Civil Aviation Authority of Thailand.
