Thai AirAsia (TAA), Thailand's largest low-cost carrier, may waive fuel surcharges on its international flights in response to plunging fuel prices.
Chief executive Tassapon Bijleveld said on Thursday the airline might suspend fuel surcharges, one of the prime costs on overall ticket prices, next month.
The budget airline imposes fuel surcharges on its international flights but not on its domestic routes.
The surcharges are 275 baht for flights that take one to two hours, 405 baht for flights of two to three hours, 565 baht for four-hour flights and 715 baht for flights exceeding four hours.
Mr Tassapon said TAA should see the results of reduced fuel prices on its overall cost structure next month and that could be translated into lower charges for passengers.
He maintained that current fares were based on the old cost structure where fuel prices were still high and most tickets were sold in advance.
He claimed the fuel surcharge imposed by TAA represents only 30% of what is collected by other airlines.
TAA is the only airline in Thailand to make known its reaction to the 50% drop in fuel prices.
Transport Minister Prajin Juntong said on Wednesday that he had instructed the Civil Aviation Department to look at the possibility of reducing air fares by decreasing fuel surcharges to reflect lower jet fuel prices.
Mr Tassapon said TAA paid an average of US$120 for a barrel of jet fuel last year.
He insisted that though crude oil prices have fallen by half since June, fuel costs will remain the largest cost for the airline. A barrel of jet fuel is normally about $20 higher than a barrel of crude.