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Countdown to Airport Tax Increase on 20 Jun Raises Concerns Over Ticket Prices, Calls for Transparency

Theissue28 Apr 2026 19:43 GMT+7

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Countdown to Airport Tax Increase on 20 Jun Raises Concerns Over Ticket Prices, Calls for Transparency

Countdown to 20 Jun 2026 airport tax increase on international outbound passengers from 730 to 1,120 baht per person. TDRI expresses concern over potential impact on airfare prices and calls for regulatory oversight and transparent disclosure of information.

Regarding the case where the Airports of Thailand Public Company Limited (AOT). announced an increase in the Passenger Service Charge (PSC) for international departing passengers to 1,120 baht per person, up from 730 baht, effective from 20 June 2026.

This applies to six airports: Suvarnabhumi, Don Mueang, Chiang Mai, Mae Fah Luang - Chiang Rai, Phuket, and Hat Yai airports.

The adjustment affects only international outbound passengers, while domestic passenger service charges remain at 130 baht per person to support the government’s domestic tourism promotion policy.

Most recently, the Thailand Development Research Institute (TDRI) through Dr. Sumeth Ongkittikul, Research Director of Transport Policy and Logistics, and researcher Kittiya Yitsanichakul, stated that the PSC increase from 730 to 1,120 baht represents a 53% rise and is the largest hike in the past 10 years, which will likely cause airfare prices to rise accordingly.

Previously, the PSC rates at six main airports under AOT’s management — Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, and Chiang Rai — charged up to 730 baht for international departures and up to 130 baht for domestic flights.

Meanwhile, airports operated by Bangkok Airways Public Company Limited — Trat, Samui, and Sukhothai airports — charge up to 700 baht for international departures at Samui, up to 500 baht at Sukhothai, and domestic charges of up to 200 baht at Trat and up to 400 baht at Samui and Sukhothai.

Regarding the Department of Airports, which manages two airport groups: Group 1 (Chumphon, Trang, Tak, Nakhon Phanom, Nakhon Ratchasima, Narathiwat, Nan, Nakhon, Buri Ram, Pattani, Pai, Phetchabun, Phrae, Mae Sot, Mae Sariang, Mae Hong Son, Roi Et, Ranong, Lampang, Loei, Sakon Nakhon, Hua Hin, Udon Thani) and Group 2 (Krabi, Surat Thani, Ubon Ratchathani, Khon Kaen, Nakhon Si Thammarat, Phitsanulok). Group 1 charges up to 400 baht for international departures and up to 50 baht domestically; Group 2 charges up to 425 baht internationally and up to 75 baht domestically. Betong airport charges up to 50 baht.

As for the Royal Thai Navy, which manages U-Tapao Rayong Pattaya Airport, charges up to 400 baht for outbound passengers and up to 50 baht domestically, per trip.

Major AOT airports remain profitable.

TDRI revealed that although AOT explained that the price hike aims to cover operating costs and improve services at the six airports in the future, there is no detailed information on increased costs or a clear connection between the hike and future development plans.

Meanwhile, reviewing AOT’s financial results over the past 10 years shows a strong financial position with operating profits ranging from 90 to 290 baht per passenger. Despite impacts from COVID-19, AOT has recovered, posting an operating profit of 25.859 billion baht in 2025.

Among the six main airports, all are profitable except Hat Yai and Chiang Rai, which are still running at a loss due to a high proportion of domestic flights. This suggests that domestic PSC rates may not reflect true costs, causing losses. Airports with a higher share of international flights receive higher PSC rates and thus generate profits, possibly offsetting losses at others.

Call for transparent regulation and disclosure of fee structure.

Examining examples abroad shows that fee structures usually clearly justify pricing. In Europe, airports can set different prices based on differing service costs.

For instance, airports managed by Aéroports de Paris in France charge passenger fees based on destination type: lower rates for domestic or Schengen area flights, and rates twice as high for outside Schengen and international flights, reflecting differing service costs.

Meanwhile, neighboring countries’ airports such as Singapore’s Changi Airport structure passenger fees according to fund usage. Total charges are about 1,649 baht, divided into Passenger Service & Security Fee of 1,173 baht, Aviation Levy of 202 baht, and Airport Development Fee of 273 baht, the latter comprising 17% of total fees collected.

TDRI also pointed out that airports worldwide operate under varied models — government-run, state enterprises, or privatized — with governments acting as regulators. Regardless of the model, effective regulation is crucial to control prices, service quality, and operations. Airports are monopolies requiring large investments and cannot compete, creating risks of excessive pricing or inefficient investments.

Abroad, transparent and clear regulatory mechanisms track performance, service quality, and price adjustments. For example, in the UK, Heathrow Airport’s fees are capped by the Civil Aviation Authority (CAA), reviewed every five years.

Key factors considered include passenger volume forecasts, operating costs (only efficient costs), capital budgets and development plans (both future and committed projects), financial data, asset base, and service quality indicators such as passenger wait times and cleanliness. CAA consults stakeholders and publicly reports these data (CAA, 2023).

Australia uses a more flexible approach, allowing airports to set prices through negotiations with airlines, but the Australian Competition and Consumer Commission (ACCC) monitors and publicly reports airport performance continuously, including revenue, aviation and commercial services, operating margins, retrospective fees, facility adequacy, and passenger processing speed (ACCC, 2025). Although ACCC does not directly control prices, its oversight promotes reasonable pricing.

In Thailand, AOT is both a state enterprise (70% owned by the Ministry of Finance) and a listed company, presenting regulatory challenges due to differing incentives between shareholder returns and fair user fees.

Although AOT submitted supporting data for the PSC adjustment to the Civil Aviation Authority of Thailand (CAAT) and held stakeholder consultations as per the 3/2025 CAAT board meeting resolution, there has been no public disclosure of details regarding this adjustment. This contrasts with UK practices.

Furthermore, if private operators seek similar fee adjustments in the future, the government must establish clear criteria and mechanisms for evaluation.

Compared to international practices, this PSC increase lacks sufficient public data disclosure, making the justification unclear to users and potentially undermining future regulatory credibility.

Therefore, non-transparent regulation will inevitably impact both international tourists and domestic citizens.