Thailand to Hike International Airport Fees by 53% from June 2026

State-owned Airports of Thailand (AOT) has confirmed it will implement a significant increase to its international Passenger Service Charge (PSC), a fee included in flight tickets. Effective June 20, 2026, the charge for international passengers will rise by 53%, a move intended to finance extensive airport infrastructure upgrades across the country.

The PSC increase will directly impact travelers departing from Thailand's six primary international gateways. The additional revenue is earmarked for critical capacity enhancements, most notably the planned South Terminal at Bangkok's Suvarnabhumi Airport (BKK). While AOT frames the decision as essential for future growth and aligning with global norms, the hike places Thailand's airport fees above several major Asian competitors, raising questions about its impact on the nation's tourism competitiveness, particularly within the low-cost carrier segment.

Details of the Fee Adjustment

According to the official AOT announcement, the PSC for international departures will increase from 730 baht to 1,120 baht per person. This change affects Suvarnabhumi Airport (BKK), Don Mueang International Airport (DMK), Chiang Mai, Mae Fah Luang Chiang Rai, Phuket, and Hat Yai airports. The PSC for domestic passengers will remain unchanged at 130 baht. The Civil Aviation Board of Thailand, the country's regulatory body, formally approved AOT's request for the increase on December 3, 2025.

AOT projects the revised fee structure will generate an additional 10 billion to 13 billion baht in annual revenue. This capital is crucial for the company's long-term development strategy, which includes modernizing facilities and expanding capacity to handle projected growth in air traffic. A central component of this strategy is the rollout of Common Use Passenger Processing Systems (CUPPS), a shared technology platform designed to improve efficiency for check-in and boarding operations across its airports.

Funding Infrastructure and Financial Strategy

The primary driver for the PSC increase is the need to fund large-scale infrastructure projects without excessive reliance on debt. The most significant of these is the new South Terminal at Suvarnabhumi Airport, a project with an estimated value exceeding 200 billion baht. This expansion is vital for relieving congestion at Thailand's main international hub.

Paweena Jariyathitipong, President of Airports of Thailand Public Company Limited (AOT), stated that the revenue will help improve the company's cost structure and strengthen its financial resilience. According to Jariyathitipong, internal studies suggest the PSC represents a small fraction of total travel expenses and is not expected to materially affect passengers' decisions to travel to Thailand. The move is presented as a strategic investment in service quality and operational capacity rather than a measure to maximize profit. Official corporate information regarding AOT's financial strategy is available through its Investor Relations portal.

Regional Competitiveness and Market Impact

The fee adjustment positions Thailand's airport charges at a higher level than some of its key regional competitors. Following the increase, the international departure fee at Bangkok's hubs will surpass those at major airports such as Incheon in South Korea and both Haneda and Narita in Japan. This could influence airline network planning and potentially impact Thailand's attractiveness relative to cheaper regional destinations like Vietnam or Malaysia.

The impact may be most pronounced for low-cost carriers, for whom airport charges constitute a larger percentage of the final ticket price. Analysis suggests the fee hike could increase airfares on some budget flights by 7-10%. In its justification, AOT noted that over 90% of airports worldwide levy fees on both departing and transit passengers, whereas Thailand has historically only charged departing travelers, suggesting the new structure brings it closer to global standards.

Why This Matters

This fee increase represents a pivotal moment for Thai aviation, balancing the urgent need for infrastructure investment against the risk of diminishing its cost-competitiveness. For airlines, particularly low-cost carriers, it necessitates a recalibration of pricing strategies for one of Southeast Asia's most popular markets. The success of AOT's strategy will depend on whether the tangible improvements in airport capacity and passenger experience ultimately outweigh the higher upfront cost for travelers.

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