Low-cost carriers are ready to lower domestic airfares after the cabinet approved the extension of jet fuel tax reduction.
Santisuk Klongchaiya of Thai AirAsia (TAA), Thailand's largest low-cost carrier, said the decision from the government will help airlines save costs and allow them to maintain average airfare prices.
Mr Santisuk said the average ticket price is quite cheap. The rate per flight is around 900-1,000 baht depending on the destination and booking period.
Prime Minister Prayut Chan-o-cha has met airline executives and agreed to allocate 24 billion baht in soft loans. The request has yet to be granted.
"We still have weak demand for weekday flights because of the lack of international tourists who would normally fill this void," said Mr Santisuk.
Nuntaporn Komonsittivate of Thai Lion Air (TLA) said the average domestic airfare is 1,200-1,500 baht, which is slightly higher than the pre-pandemic rate of around 1,000-1,200 baht as the industry has to depend on domestic travellers.
"The average price before the pandemic was too low as there was fierce competition. The current price better reflects the true cost than last year's prices," said Ms Nuntaporn.
