Airlines reluctant to hike fares during SongkranAmid subdued demand from long-haul visitors, airlines are reluctant to increase domestic airfares during the upcoming Songkran holidays, with the Civil Aviation Authority of Thailand (CAAT) reporting no abnormal surge in fares over the period despite higher fuel prices. This increased capacity would help keep airfares at appropriate levels, as many airlines have taken delivery of additional aircraft, he said. He said airline fuel surcharges apply only to international routes and are calculated based on fuel costs, similar to the electricity fuel tariff. According to the International Air Transport Association's (IATA) latest report, fluctuations in fuel prices have a significant impact on airline profitability. The most difficult period for airlines is when fuel costs rise rapidly and carriers lack time to adjust their strategies.
