Locals cried foul over an airfare of almost B10,000 for Bangkok-Hat Yai flights, prompting the Civil Aviation Authority of Thailand (CAAT) to investigate the case, reports the Bangkok Post.
The regulator said the price ceiling for this route is capped at B7,266 for low-cost carriers and B10,049 for full-service flights.
Puttipong Prasarttong-Osoth, president of SET-listed Bangkok Airways, said the airline’s average airfare in the third quarter decreased by 2.2% to B4,115.3 year-on-year, while over the first nine months of this year average fares fell 1.1% to B4,178.9.
Of those fares, domestic routes excluding Samui decreased due to heightened competition among local airlines, which discounted fares to entice purchases.
He said yields for domestic routes plunged due to enormous supply.
In the first nine months of 2025, Bangkok Airways posted a revenue dip of 0.1%, attributed to reduced fare income of B405 million, down 2.9%.
Thai AirAsia registered a drop of 12% for average airfares to B1,633 in the third quarter, due to weak demand from foreigners for both international and domestic trips.
Wutthiphum Jurangkool, former chief executive of Nok Air, said while the airline maintains its domestic market share at 25%, trailing Thai AirAsia’s 37%, revenue from ticket sales continued to drop as more low-cost carriers pivoted to domestic routes.
This trend aligns with the global market, which saw airfares drop by 5% this year. The average domestic airfare of Nok Air is B1,300 year-to-date.
Mr Wutthiphum, who stepped down as chief executive this week but remains a plan administrator for its rehabilitation, said many airlines struggled to secure a healthy load factor for Chinese routes. Several airlines also increased capacity from new aircraft deliveries, which were planned before the downturn in tourism, he said. Those jets were redirected from foreign to domestic flights to enhance their existing fleet.
Even though Chinese travellers are expected to return to Thailand as a result of its recent rift with Japan, which saw hundreds of thousands of seats from China cancelled, Chinese airlines should benefit much more than Thai carriers, said Mr Wutthiphum.
As more than 50% of major airlines in China are state-owned businesses, local governments support them by offering subsidies to both airline operators and tour operators to increase traffic.
"Given a weak Chinese market and strong Chinese competitors, many low-cost carriers reduced or cut services to China, paving the way for stronger domestic routes," he said.
"This resulted in overwhelming supply and lower airfares in the third quarter."
Nok Air stopped all international flights, including to China, while it deals with a red flag concerning safety issued by the CAAT. Thai Lion Air slashed Chinese routes from 35 to 10.
LONG-HAUL GAINS
Mr Puttipong said the European market helped buoy international passengers during the first nine months of 2025, with the segment contributing 82% of total passenger revenue.
Passengers from Germany and the UK rose by 15% and 11%, respectively, while overall revenue from points of sale in Europe and the Middle East grew by 4%, accounting for 55% of international markets ‒ a stark contrast to sales from Asia and Oceania that contracted by 22%.
He said robust demand remains for Samui, as Bangkok Airways’ airport hub in Surat Thani comprised 66% of all passengers, up 4% year-on-year in the first nine months, and is expected to secure 2.8mn passengers this year.
However, the airline reported adjustments of some domestic and international routes in the third quarter to accommodate changing demand.
Direct flights to Phnom Penh in Cambodia were slashed from three to one daily flight, while Bangkok-Lampang flights were reduced and the Lampang-Mae Hong Song service was cancelled.
Bangkok Airways earned B19.9 billion during the first nine months of the year, gaining a net profit of B3.13bn from 3.24mn passengers.