The Airlines Association of Thailand (AAT) recently held its 25th regular meeting in Phuket from March 13-14, 2026. The event brought together senior management from member airlines, including Bangkok Airways (BA), Thai AirAsia (under AAV), Thai AirAsia X, Nok Air, Thai Lion Air, and Thai VietJet to assess the current aviation sector, discuss the industry’s development strategies, and address challenges related to economic conditions and the international environment.
According to Mr. Puttipong Prasarttong-Osoth, Chief Executive Officer of BA and AAT president, the aviation industry plays a critical role in underpinning Thailand’s economy and tourism. Amid fluctuating fuel costs linked to global events, he stated that state support measures would help relieve airlines’ financial pressures while maintaining vital domestic routes, which contribute to regional income distribution and economic activity, particularly in major tourist provinces.
Key agenda items during the latest AAT meeting included updates on association initiatives. Among them was the discounted ticket program for the Songkran festival in 2026, which will see special flights from member carriers and cap fares up to 30% lower than the standard maximum. Other topics involved strengthening industry standards and reviewing operational regulations to support the ongoing recovery and resilience of Thai aviation.
Participants also discussed the impact of volatile fuel prices, which have been affected by geopolitical tensions in several parts of the world. Concerns were raised regarding the unpredictability of global energy costs and its effect on airline expenses. The AAT proposed that the government temporarily lower the domestic Jet A-1 fuel excise tax as a short-term measure to address those rising operational costs and help airlines maintain fare affordability for both local travelers and tourists.
Separately, the Tourism Authority of Thailand (TAT) plans to propose the ‘Buy International, Free Thailand Domestic Flights’ campaign to the incoming government. This program would offer free domestic flight tickets to foreign tourists purchasing international fares into Thailand. The initiative is aimed at boosting inbound tourism, while a monitoring center will be set up to closely observe trends in aviation and tourism, supporting Thailand’s image as a safe travel destination.
DAOL Securities (Thailand) views such measures as positive for both tourism and airlines. The firm noted this idea had been raised previously in August 2025, when authorities considered issuing 200,000 free domestic tickets for arriving international travelers, with a budget of about THB 700 million.
Each ticket would represent a government subsidy of THB 1,750 per flight, or THB 3,500 for a round trip, covering a total of 400,000 seats across six airlines: Thai Airways (THAI), Bangkok Airways (BA), Asia Aviation (AAV), Nok Air, Thai Lion Air, and Thai VietJet.
DAOL expects new tourism-stimulus policies to be among the first key measures once the new government is established, given the crucial role sector revenue plays in GDP growth. Companies likely to benefit from a rebound in domestic travel include The Erawan Group (ERW), Central Plaza Hotel (CENTEL), Minor International (MINT), and S Hotels & Resorts (SHR), ranked by revenue exposure. Among airlines, AAV, BA, and THAI are positioned to gain the most from increased domestic tourism demand.
CENTEL reported strong forward bookings for April 2026, with hotels in Bangkok seeing about 80% occupancy, Phuket at roughly 90%, Pattaya at around 80%, and other regions averaging 70%. This points to ongoing growth compared with the previous year.
DAOL currently rates the tourism sector as ‘Market Weight,’ citing ERW (rated ‘Buy’ with a target of THB 2.90 per share) and CENTEL (rated ‘Buy’ with a target of THB 42.00 per share) as primary beneficiaries of government stimulus.
Meanwhile, Krungsri Securities (KSS) pointed to the reopening of certain Middle East air routes, as well as the planned TAT air-ticket campaign, as supportive of short-term increases in tourist arrivals.
Krungsri believes this represents a buying opportunity for hotel operators with a strong domestic customer base, including Asset World Corp (AWC), CENTEL, and ERW, which are positioned to benefit first from a domestic travel recovery.
