Thai Airlines Push Government to Slash Jet Fuel Tax From 4.73 to 0.20 Baht per Litre

A Bold Tax Proposal to Keep Flights Affordable

The Airlines Association of Thailand (AAT) has formally asked the government to reduce the domestic jet fuel excise tax from 4.726 baht per litre to just 0.20 baht per litre. The proposal came out of the AAT's 25th regular meeting held in Phuket on March 13-14, 2026, attended by senior management from Bangkok Airways, Thai AirAsia, Thai AirAsia X, Nok Air, Thai Lion Air, and Thai VietJet.

The request targets fuel surcharges that currently add between 8 and 12 percent to the price of a domestic plane ticket.

Why Airlines Are Asking for Relief

Rising global oil prices, driven partly by the ongoing Middle East conflict, have pushed aviation fuel costs to levels that make it increasingly difficult for carriers to hold fares steady. Rerouted flights around conflict zones have added to fuel consumption and operating expenses. The combined pressure has led to a 10 to 15 percent increase in airfares to and within Thailand.

For budget-conscious travelers, the impact is real. Domestic routes that once cost under 1,000 baht one-way are now consistently priced higher, eroding one of Thailand's key advantages: affordability. For more on what travel costs look like right now, see our Thailand budget guide for 2026.

What Approval Would Mean for Travelers

If the government approves the temporary tax cut, the AAT estimates it could:

• Lower average domestic ticket prices by about 100 baht per flight
• Unlock 3.8 million additional domestic seats between mid-January and mid-May 2026
• Reduce ticket prices by 6 to 8 percent on domestic routes and 4 to 5 percent on regional international flights

Current projections suggest the exemption could be approved by June 2026. This would be welcome news given broader concerns about Thailand's tourism competitiveness in the region.

Songkran Fare Relief Already Underway

In the meantime, the AAT has coordinated with member airlines to offer a special Songkran airfare scheme. Airlines are adding extra flights during the April festival period and capping maximum ticket prices, with discounts of up to 30 percent on selected domestic routes. Larger aircraft are being deployed on high-demand routes like Bangkok-Phuket, swapping Airbus A320s for widebody Boeing 777-200ERs and Airbus A330-300s to accommodate more passengers.

The Bangkok Songkran 2026 celebrations are expected to draw record crowds, making affordable flights particularly valuable this year. Thai carriers have been warning about a tourism boom straining capacity since late 2025.

Should You Wait to Book?

If you are planning domestic flights within Thailand for the coming months, booking Songkran routes now while promotional fares are available makes sense. For travel later in 2026, the potential tax cut could bring broader relief — but nothing is guaranteed until the cabinet signs off.

High airfares are part of a wider set of rising costs facing tourists in Thailand. If you are budget planning, also check how much two weeks in Thailand costs in 2026 and our round-up of new airline routes to Thailand this year for alternatives to domestic carriers. The Thailand oil crisis and its impact on flight prices is another related development worth reading before you book. For context on the broader aviation situation, the Aerothai flight cancellations during the Gulf crisis show how quickly air travel in Thailand can be disrupted.