As the Civil Aviation Authority of Thailand (CAAT) prepares to curb high airfares during the Songkran festival, Thai AirAsia said it would keep prices in check, though its average rate never exceeded the ceiling set by the regulator.
CAAT insisted this week a price ceiling would be the main mechanism to cap low-cost airline fares at 9.40 baht per kilometre, while for full-service airlines the fare ceiling is 13 baht per km.
The authority said it would also support both airports and airlines on increasing flights during high-demand periods.
Tassapon Bijleveld, executive chairman of Asia Aviation, the majority shareholder of Thai AirAsia, said the airline has strictly complied with CAAT on prices, never charging higher airfares than regulations allow.
He said some routes have pricey airfares on a few airlines, but those fares probably only apply to 3-5 seats in total.
Mr Tassapon said he believes all airlines plan to cooperate with the CAAT by maximising their capacity during the Songkran holiday, but it won't be possible for local airlines to offer extraordinarily low fares as they did before the pandemic.
"Airlines agreed to help increase capacity to help control average airfares, but the regulator should also acknowledge that airlines today have 30% higher costs than during the pre-pandemic period, especially maintenance costs, as we cannot compromise on safety after more aviation accidents in recent months," he said.
While fares did surge during the pandemic, airlines did not register a large profit as each flight's potential profit was limited to a modest 7-8% at most, said Mr Tassapon.
He said even though robust demand during high season still supports the aviation sector in the first quarter, many airlines faced the same setback during the Chinese New Year holiday, when routes connecting China gained lower inbound passengers than expected.
In terms of Thai AirAsia's flights, the Chinese market dropped by 10%, while demand for the next few months has yet to resume.
He said the government should also help stimulate travel demand in April by organising and promoting festive events across Thailand to help tourism operators compensate lost revenue during the Chinese New Year holiday.