The third Civil Aviation Board (CAB) meeting of the year will be held on December 3, 2025, setting to consider the proposed increase in Passenger Service Charges (PSC) by Airports of Thailand Public Company Limited (SET: AOT) and the Department of Airports.
AOT has proposed to the Civil Aviation Authority of Thailand (CAAT) to raise the PSC for both international and domestic routes by at least THB 200 per passenger. This is a significant jump from the previously proposed increase of only THB 5 per passenger. According to Paweena Jariyathitipong, acting President of AOT, the company has not adjusted the PSC rate in 19 years, as such the appropriate rate should be no less than THB 200. In the proposal from AOT, the company also requested CAAT to review PSC rates every 5 years, aligning with global airport standards.
If approved, AOT will publish an announcement four months prior to the implementation, with the expected new rates to take effect in April 2026.
With this adjustment, PSC for international routes will increase from THB 730 to about THB 1,000 per passenger, while domestic PSC will rise from THB 130 to roughly THB 330 per passenger. Across ASEAN, most countries already impose PSC rates above THB 1,000 per passenger, except for Malaysia, which remains lower.
Every 100-baht increase in international PSC for AOT is projected to boost annual revenue by THB 3.5 billion; the same increase for domestic flights would bring in an additional THB 2 billion. Thus, a 200-baht rise in PSC across both domestic and international routes is forecasted to add about THB 11 billion annually to AOT’s revenue.
Top airports in the region, such as Changi Airport, charge a PSC of about THB 1,400 per passenger, set to rise to THB 1,600 soon, while AOT currently collects only THB 730 from international passengers.
Following the AOT Property Showcase on April 29, and AOT Property Tour between April and July 2025, numerous investors have shown interest in commercial development projects at six AOT airports: Suvarnabhumi, Don Mueang, Chiang Mai, Mae Fah Luang-Chiang Rai, Phuket, and Hat Yai.
The development project also includes business areas: hotels, maintenance repair and overhaul (MRO) centers, mixed-use complexes, private jet terminals, logistics hubs, training centers, EV charging and repair stations, and in-terminal attractions. Sixteen AOT concession projects are presently in the approval process.
AOT highlights its potential for airport-related commercial development to support aviation and tourism growth, aiming to establish a new economic hub with private sector partnership.
Key areas include 1) Suvarnabhumi’s 275-rai Airport Business Plot B, a 105-rai aviation services and support plot, situated next to major road and 9 minutes away from terminal, and Suvarnabhumi’s 105-rai Services Centers and Airport Business Support Plot E.
2) A Plot 3 area near Hat Yai Airport, situated next to Rural Road 4040 and the Highway 425 extension (under construction).
3) A 91-rai land in front of Mae Fah Luang-Chiang Rai Airport.
Suvarnabhumi Airport recently ranked 12th globally in Most Connected Airport in the Official Airline Guide’s (OAG) Megahubs 2025 report and 5th in the Asia-Pacific region for Top International by Region ranking. Don Mueang Airport ranked 22nd in the Low-Cost Carrier Airports Megahubs group. OAG’s ranking is based on the volume of seats and connectivity during peak travel periods between September 2024 and August 2025, showcasing the airports’ capability in capacity and connection with airports worldwide.
Suvarnabhumi’s ranking demonstrates its connectivity potential, infrastructure, passenger handling, and management efficiency, boosting confidence among airlines and supporting its ambition to be the regional aviation hub.
Air Chief Marshal Manat Chavanaprayoon, Director of CAAT, disclosed that three agencies have submitted aviation fee increase proposals for CAB deliberation: 1) CAAT seeks to raise departure/arrival fees from THB 15 to 25 per person per flight; 2) AOT seeks to increase International PSC by over THB 200 and is studying service charges for transit/transfer passengers; and 3) the Department of Airports proposes a 25-baht PSC increase for Trang Airport.
Krungsri Securities noted that every 100-baht change in international PSC affects AOT’s target price by THB 3.25, and every 100-baht change in domestic PSC by THB 2.25. This forecast, however, was under the assumption that successful negotiation with King Power Corporation (KPD) creates minimum guarantee (MG) at THB 8 billion and the new Suvarnabhumi ground/cargo tenders provide significant upsides.
Bualuang Securities upgraded its AOT recommendation to “Buy” and raised the target price to THB 47, viewing the PSC hike as a game changer likely effective in fiscal 2026.
The securities firm estimated that the international PSC will rise by THB 200 to THB 930 per person, domestic by THB 100 to THB 230 per person, likely effective April 2026—boosting AOT’s revenue by another THB 6.5 billion in fiscal 2026 (up 24%) and another 21% in 2027. This will enable profits to return to pre-crisis (2019) levels at THB 25 billion by 2027, with a 22% CAGR. Increased aviation revenue will offset lost duty-free business revenue of THB 6 billion per year, shifting the revenue base toward aviation.
