The CEO of Thai AirAsia (FD, Bangkok Don Mueang) has called on the Thai government to do more to encourage domestic tourism and Chinese inbound travel, according to the Bangkok Post.

CEO Santisuk Klongchaiya told the newspaper that passengers were reverting to their normal travel patterns after a record 2023, and reducing the jet fuel excise tax would help encourage Thais to book more domestic travel.

According to ch-aviation PRO airlines data, Thai AirAsia operates to 72 airports in 17 countries using a fleet of 57 aircraft, including forty-three A320-200s, eleven A320-200Ns, and three A321-200NX types. Its top ten busiest routes in terms of weekly available seat capacity are all domestic, and domestic routes account for over 75% of the carrier's total weekly available seat capacity.

Klongchaiya said the average domestic load factor in the second quarter of 2024 was 90%, down from 94% in the comparable 2023 quarter and 96% in the first quarter of 2024. He said 2023 was a particularly strong year because of the pandemic-related pent-up travel demand, which is now ebbing. The Thai government imposes a jet fuel excise tax of THB4.726 baht (USD0.13) per litre, and Klongchaiya said reducing or axing this would help stimulate travel.

Despite this, Thai AirAsia is planning to start flights between Bangkok Don Mueang and Lampang in October. It will be the carrier's 25th domestic destination, and the daily flights will take the number of weekly domestic flights operated to 612 across 35 routes.

Passenger loads across Thai AirAsia's international flights averaged 90% in the second quarter of 2024, the same as the first quarter but up from 83% in the comparable 2023 quarter. Klongchaiya said inbound demand from China remained subdued, and Thailand was unlikely to meet its target of eight million Chinese tourists this year.

"About six to seven million Chinese tourists this year is the most likely scenario," he said. "To reach eight million, there must be stimulus to accelerate demand as the Chinese government is now quite active in terms of promoting its domestic tourism."

Separately, he said Thai AirAsia was likely to start flights to Phu Quoc, Hyderabad International, and Kathmandu in the second half of 2024.