The Civil Aviation Authority of Thailand reported total passenger volume in the second quarter of 2026 at 31.79 million, down 25.04% from the previous quarter, comprising 14.65 million domestic passengers and 17.13 million international passengers. Total flights came to 211,532, down 18.71%, while air cargo expanded 1.23% to 421,513.04 tonnes, supported by exports of agricultural products and fresh fruit. The conflict in the Middle East led to the suspension of 1,896 flights from Thailand to the Middle East, a loss of 637,121 seats of passenger capacity, and a 6.21% decline in Thailand-Middle East routes to 5,827 flights. Thailand-Europe routes rose 4.68% to 5,952 flights. Persistently high Jet A-1 fuel prices are pressuring airline costs. The CAAT has therefore approved an international route fuel surcharge ceiling to reflect actual costs, while instructing relevant agencies to increase the domestic air navigation service charge reduction from 25% to 30%, cut aircraft parking fees by 50%, and extend payment deadlines for landing and parking charges by one month per instalment. The CAAT confirmed it will not raise the domestic fare ceiling and will oversee passenger rights protection measures under Civil Aviation Board Regulation No. 101. Meanwhile, the Monetary Policy Committee voted unanimously to keep the policy rate at 1.00% per annum, amid a trend of headline inflation in 2026 rising to an average of 2.9% and the economy expanding by only 1.5%, risking stagflation alongside inflation.
Policy rate kept at 1.00% amid rising inflation and weak growth, suggesting stagflation risk which may pressure bond yields.
