While rising fuel cost is inevitable, Thai Airways International (THAI) is on course to gain from airspace closures across several countries in the Middle East amid tensions in the Gulf region, where the flag carrier has no direct exposure, analysts say. Maybank Securities also sees potential upside for THAI as its flights to Europe typically do not bypass the Middle East. PASSING ON COSTSBoth brokerages noted THAI remains susceptible to higher jet fuel prices, given that fuel accounted for 32-40% of its operating expenses in fiscal 2025. CGS projects THAI to raise ticket prices in response to higher fuel costs, while limited capacity from Gulf carriers due to airspace closures should reduce competitive pressure on Europe routes. "We believe THAI should be able to pass on the majority of its cost increases through higher ticket prices."
