Thailand aviation sector shows mixed results as AOT profits rise and Thai Airways faces fuel costs

Airports of Thailand (AOT) reported a net profit of 14.812 billion baht for the first three quarters of fiscal year 2026, representing a 3.86% increase compared to the previous year. While total revenue saw a 1.39% decrease due to a drop in non-aviation income, profits were bolstered by cost-cutting measures and a 2.72% rise in aviation-related revenue. Passenger numbers across AOT's six airports rose by 1.84% to 99.03 million, including 60.24 million international travelers.

To recover non-aviation revenue, AOT is investigating the feasibility of reintroducing duty-free shops for arriving passengers and implementing premium services like fast-track lanes to reduce terminal congestion. Additionally, the company is pursuing commercial development near Suvarnabhumi Airport, with several firms showing interest in logistics and warehousing projects.

Separately, Thai Airways faces a complex financial outlook. Analysts expect a slowdown in the second quarter of 2026, with net profit projected at 900 million baht, a 6% decrease year-on-year. The airline is struggling with a significant surge in fuel costs, which are expected to rise by 70% to 75%, and a decline in passenger traffic on long-haul routes to Europe and Australia. Despite higher ticket prices, passenger numbers are projected to fall by 8% in the second quarter.