THAI forced to increase ticket prices

The war in the Middle East has driven up operating cost for Thai Airways International (THAI), with jet fuel prices rising by more than twofold, forcing the national carrier to increase average ticket prices by 10-15% to stay afloat.

- SUPOJ WANCHAROEN

Chai Eamsiri, THAI chief executive, said jet fuel prices had surged from around US$80 per barrel before the conflict to US$220, and could climb further to US$240 under a worst-case scenario if the war drags on for another two months through the end of May.

“The rise reflects real costs, not opportunism,” he said. “We only aim to cover fuel expenses to ensure survival. Without raising fares, the organisation cannot continue.”

Although the airline has hedged around 50% of its fuel consumption until June, Mr Chai said increasing hedging at current levels would be risky because prices have already reset higher, exposing the company to potential losses if fuel prices later retreat.