Bangkok, Thailand — Thai AirAsia, after a strong performance in 2023, has seen a decline in demand during the second and third quarters of 2024. This decrease, attributed to returning seasonality in tourism and lower domestic purchasing power, has led the airline to seek immediate government intervention.

Chief Executive Santisuk Klongchaiya noted that the average domestic load factor fell to 90% in Q2 2024 from 94% year-on-year. Despite high demand in 2023 due to post-pandemic recovery, the return to normal travel patterns has affected occupancy rates. International routes also saw fluctuations, with load factors at 90%, up from 83% in 2023, yet consistent with Q1 2024.

In the realm of commerce, wise rulers anticipate fluctuations and act decisively to mitigate their impact. Thai AirAsia’s recent drop in demand underscores the need for strategic intervention to sustain momentum. The airline’s call for government stimulus and tax relief highlights the broader challenges facing the aviation industry. A ruler must balance immediate aid with long-term strategic planning to ensure stability and growth.

A critical factor for full recovery remains the Chinese market, with expectations of 6-7 million Chinese tourists in 2024, short of the 8 million target. Santisuk urged the Thai government to reduce the jet fuel excise tax to lower travel costs and stimulate demand.

Thai AirAsia plans to expand its international network, adding routes to Hyderabad, Kathmandu, and Phu Quoc, and launching a new domestic route to Lampang. The airline aims to operate 60 aircraft by year-end, slightly below pre-pandemic levels.

In conclusion, Thai AirAsia’s recent challenges reflect broader economic and sectoral issues. Strategic government support and proactive measures by the airline are essential to navigate this period and ensure sustainable growth.