Thai airlines hit by oil crisis as 3,800 flights cancelled and 1.2m seats lost

Thai airlines have been hit hard by the oil crisis, cancelling around 3,800 flights and losing 1.2 million seats.

The prolonged situation in the Middle East has kept Jet A-1 aviation fuel prices two to three times higher than normal, pushing airlines’ fuel costs from around 30% to more than 50% of total operating costs.

Combined with the low season, several Thai airlines have continued to cancel flights and reduce services during this period.

Air Chief Marshal Manat Chavanaprayoon, Director General of the Civil Aviation Authority of Thailand (CAAT), said the aviation industry in the first half of the year had been affected by the Middle East war, with around 3,840 flights lost, affecting more than 1.2 million accumulated seats.

The impact has been worsened by a more than 110% rise in Jet A-1 fuel prices, which has pushed fuel costs from 30% to 50% of airlines’ total costs. This is the main reason airfares on some routes, such as Bangkok-Chiang Mai, have risen by an average of 45%.

However, the current situation shows that airlines are now submitting fewer flight cancellation requests and are moving closer to normal conditions. From a peak of almost 10,000 flights in May, cancellations are expected to fall to around 2,000 flights.

Manat said that if no further incidents emerge in July and August, the aviation business is expected to fully recover during the high season in October.

For the second half of the year, CAAT expects market mechanisms to gradually return to balance. As demand for air travel rises and airline competition increases, airfares should gradually decline in line with market forces.

CAAT has also emphasised consumer rights protection, advising the public to book tickets directly through airline websites or applications to ensure prices remain within legal fare ceilings and to avoid mark-ups by overseas agencies that are outside the reach of Thai law.

During the second quarter continuing into the third quarter of 2026, airlines are still cancelling flights.

Thai Airways has cancelled or reduced flights on 10 routes as follows:

• TG335: Bangkok-New Delhi, cancelled from June 1-30, 2026
• TG336: New Delhi-Bangkok, cancelled from June 1-30, 2026
• TG630: Bangkok-Kaohsiung, Taiwan, cancelled on June 5, 6, 8, 9, 11, 14, 15, 16, 20, 23, 25 and 26, 2026
• TG631: Kaohsiung, Taiwan-Bangkok, cancelled on June 5, 6, 8, 9, 11, 14, 15, 16, 20, 23, 25 and 26, 2026
• TG638: Bangkok-Hong Kong, cancelled on June 5, 6, 8, 9, 13, 15, 16, 17, 22 and 23, 2026
• TG639: Hong Kong-Bangkok, cancelled on June 5, 6, 8, 9, 13, 15, 16, 17, 22 and 23, 2026
• TG670: Bangkok-Sapporo, cancelled on June 7, 8, 9, 15 and 22, 2026
• TG671: Sapporo-Bangkok, cancelled on June 8, 9, 10, 16 and 23, 2026
• TG694: Bangkok-Changsha, cancelled from June 1 to September 30, 2026
• TG695: Changsha-Bangkok, cancelled from June 1 to September 30, 2026

Thai Lion Air has temporarily suspended or reduced services on the following routes:

• Don Mueang-Taipei-Nagoya: No flights from July 6-31, 2026, down from three flights per day
• Don Mueang-Shenzhen: Suspended from June 1-17 and June 19-30, 2026
• Don Mueang-Tianjin: Suspended from June 1 to July 31, 2026
• Don Mueang-Datong: Suspended from May 23 onwards
• Don Mueang-Hefei: Suspended from June 1 onwards
• Don Mueang-Jinan: Suspended from June 1 onwards
• Don Mueang-Linyi: Suspended from May 1 to September 30, 2026
• Don Mueang-Nanchang: Suspended from May 24 onwards
• Don Mueang-Xi’an: Suspended from June 2 to July 2, 2026, except June 21
• Don Mueang-Amritsar: Suspended from May 26 to August 31, 2026
• Don Mueang-Bangalore: Flights reduced from June 1-30, 2026
• Don Mueang-Delhi: Flight frequency reduced from June 20 to September 30, 2026
• Don Mueang-Surabaya: Flights reduced from June 2 to October 1, down from three flights per day
• Phuket-Singapore: Suspended from June 3 to August 1, before resuming at two flights per week from August 2-31, down from four flights per week
• Don Mueang-Kathmandu: Flights reduced from June 1 to August 31, 2026

Thai AirAsia routes cancelled or temporarily suspended

• Suvarnabhumi-Buriram: May 1 to June 30, 2026
• Suvarnabhumi-Chiang Rai: May 1 to June 30, 2026
• Suvarnabhumi-Khon Kaen: May 1 to June 30, 2026
• Suvarnabhumi-Hat Yai: May 1 to June 30, 2026
• Suvarnabhumi-Krabi: May 1 to June 30, 2026
• Suvarnabhumi-Surat Thani: May 1 to June 30, 2026
• Suvarnabhumi-Nakhon Si Thammarat: May 1 to June 30, 2026
• Suvarnabhumi-Udon Thani: April 28 to June 30, 2026
• Suvarnabhumi-Narathiwat: From April 21, 2026 onwards
• Don Mueang-Guwahati: April 29 to October 24, 2026
• Don Mueang-Kathmandu: May 1 to July 31, 2026
• Don Mueang-Bali: May 1 to June 30, 2026
• Don Mueang-Hong Kong: May 12 to June 30, 2026
• Don Mueang-Singapore: May 12 to June 30, 2026
• Don Mueang-Jaipur: May 12 to October 24, 2026
• Don Mueang-Ahmedabad: May 28 to October 24, 2026
• Don Mueang-Hyderabad: June 1 to October 24, 2026
• Don Mueang-Lucknow: June 3 to October 24, 2026
• Don Mueang-Xi’an: From May 11, 2026 onwards
• Phuket-Chennai: From April 13, 2026 onwards
• Phuket-Kochi: From April 17, 2026 onwards
• Hong Kong-Okinawa: From May 7, 2026 onwards

Fuel costs have now increased by more than three times, forcing airlines to restructure fares and flight plans to reflect real costs. Passenger volume has slowed as a result, prompting airlines to reduce frequency or temporarily suspend routes during the low season.

Airlines are still maintaining sufficient seats on core routes and are ready to increase flights again as soon as costs and demand recover.

The Middle East conflict has driven up fuel prices, with Jet A-1 aviation fuel rising by two to three times compared with levels before the conflict.

From around US$80 per barrel, the price has surged to more than US$240 per barrel, increasing per-flight costs. Fuel previously accounted for about 30% of the cost per flight.