BANGKOK – AirAsia founder Tony Fernandes has delivered a pointed but affectionate warning to Thailand’s airport authority. He is urging them to delay a major increase in passenger fees. If they do not, he warns, Thailand risks driving away the budget travelers who form the backbone of the kingdom’s tourism economy.
Airports of Thailand PCL (AOT) recently secured final government approvals to raise its international Passenger Service Charge (PSC). The fee will jump by a massive 53%. It will rise from 730 Baht to 1,120 Baht per passenger. This change will officially take effect on 20 June 2026.
The extra money collected is meant for a good cause. AOT plans to use the revenue for long-term infrastructure upgrades across its major hubs, with a master plan stretching all the way to 2060.
However, Fernandes made it clear he does not dispute AOT’s right to fund its own development. Instead, he strongly questions the timing and the structure of the price hike. He argues that this increase comes during one of the most challenging eras for the global airline industry.
A Massive Jump in Airport Fees
For years, the airport departure tax has been a hidden but accepted part of buying an international flight out of Thailand. When you buy a ticket online, the airline collects this fee and passes it on to the airport.
Starting on 20 June 2026, the cost will increase by nearly 400 Baht. While that might not sound like a huge amount of money to a luxury traveler, it represents a 53% price hike. For budget airlines like AirAsia, which often sell promotional tickets for very low prices, this fee makes up a large portion of the total ticket cost.
This new 1,120 Baht fee will apply to all outbound international passengers flying from the six major airports managed by AOT. These include:
- Suvarnabhumi Airport (Bangkok):The country’s main international gateway.
- Don Mueang International Airport (Bangkok):The primary hub for budget airlines like AirAsia.
- Phuket International Airport:The main entry point for southern island tourists.
- Chiang Mai International Airport:The busiest hub in northern Thailand.
- Hat Yai International Airport:A key transit point in the deep south.
- Mae Fah Luang Chiang Rai International Airport:Serving the far north near the Golden Triangle.
Tony Fernandes is known for speaking his mind. Over the years, he has built AirAsia into the largest low-cost airline network in Southeast Asia. He understands the mindset of the budget traveler better than almost anyone.
Fernandes noted that the aviation industry is currently dealing with high fuel prices, rising operational costs, and global supply chain issues. Because of these factors, airlines are already struggling to keep ticket prices low.
Adding a 53% tax increase on top of everything else, he argued, is terrible timing. He stressed that low-cost carriers thrive on high volume. When prices go up, fewer people travel. If fewer people travel, airlines have to cut flights, which ultimately hurts the local economy.
The Threat of Regional Rivals
Furthermore, Fernandes warned that tourists have plenty of choices. Southeast Asia is a highly competitive region for tourism. If Thailand becomes too expensive, backpackers and budget-conscious families will simply take their money elsewhere.
Countries like Malaysia and Vietnam are working hard to attract the same tourists. In fact, Fernandes has previously pointed out that Malaysia’s budget travel sector grew quickly precisely because its airport fees were kept low.
If a family of four is booking a vacation, an extra 400 Baht per person means they are paying 1,600 Baht more just to leave the country. For budget travelers, that is enough money to cover a few nights in a hostel or several meals at a local market. Fernandes fears that these travelers might choose Bali or Da Nang instead of Phuket or Chiang Mai.
On the other side of the debate, Airports of Thailand believes the fee hike is necessary. They argue that to remain a top-tier global destination, Thailand needs world-class facilities.
AOT President Paweena Jariyathitipong has strongly defended the decision. She recently stated that airport fees have historically had a very small impact on total ticket prices. According to her calculations, the new fee will add just 0.2% to the average cost of an airline ticket .
In addition, AOT is not keeping this money as profit. The organization is required by law to reinvest the passenger service charge directly into airport operations. The funds will be used for a variety of ambitious projects, including:
- Building New Terminals:Expanding capacity at Suvarnabhumi and Don Mueang airports to handle future tourist growth.
- Automated Systems:Installing Common Use Passenger Processing Systems (CUPPS) to speed up check-in times and reduce long lines.
- Green Technology:Upgrading systems to help Thailand’s airports reach a “Net Zero” carbon emissions target by the year 2050.
- Improved Security:Shifting away from manual security checks to faster, tech-driven screening models.
Paweena emphasized that Thailand’s airports must evolve. They can no longer just be places where planes take off and land. They need to be strategic economic tools that connect cultures and stimulate business. To help soften the blow for the airline industry, AOT is trying to be flexible. The airport authority has offered airlines a 60-day payment deferral plan.
Normally, airlines must hand over the passenger fees to the airport quite quickly. Under the new proposal, airlines would have an extra two months to pay the collected fees to AOT. This move is designed to help airlines manage their cash flow and ease the immediate financial burden.
While airlines appreciate the gesture, many in the industry agree with Tony Fernandes. A payment delay helps the airlines internally, but it does not change the fact that the actual tourist has to pay more for their ticket.
Keeping Domestic Travel Cheap
There is one piece of good news for local travelers. The fee increase only applies to international flights leaving the country.
The domestic Passenger Service Charge will remain exactly the same, sitting at a very affordable 130 Baht per person. AOT kept this price low on purpose. The government wants to encourage Thai citizens to travel within their own country. By keeping domestic flying cheap, money continues to flow into local provinces, supporting small businesses and regional hotels.
This means that a flight from Bangkok to Chiang Mai will not see any tax increases. The pain will only be felt by international tourists flying home, or Thai residents taking holidays abroad.
Why Budget Travelers Matter So Much
Why is Tony Fernandes so worried about budget travelers? Because they are vital to Thailand’s economy.
Luxury tourists spend a lot of money at five-star hotels, but that money often goes to large, international hotel chains. Budget travelers, on the other hand, spread their money around at the grassroots level. They eat at street food stalls, ride in local tuk-tuks, stay in family-run guesthouses, and buy souvenirs from small vendors.
If higher airport fees result in fewer budget flights, the impact will be felt most by everyday Thai citizens who rely on tourism to survive.
If you are planning to visit Thailand in the future, here is what you need to know about the upcoming changes:
- The Effective Date:The new 1,120 Baht fee starts on 20 June 2026.
- It Is Automatic:You do not need to bring cash to the airport. The fee is automatically added to your total price when you buy your ticket online or through a travel agent.
- Early Booking Trick:If you buy your airline ticket before 20 June 2026, you will be charged the old, cheaper rate. This applies even if your actual flight takes place after June 20.
The debate between AirAsia and Airports of Thailand highlights a classic problem in the travel industry. To attract tourists, a country needs excellent, modern infrastructure. However, paying for that infrastructure makes the destination more expensive, which can scare tourists away.
Tony Fernandes clearly loves Thailand and sees its massive potential. His warning comes from a place of wanting the market to grow. He believes that low costs are the secret to keeping airplanes full.
Meanwhile, Airports of Thailand is looking decades into the future. They are preparing for a world where airports must be smart, automated, and environmentally friendly. Upgrading massive transport hubs is incredibly expensive, and they believe the passengers using the airports should help pay for it.
As the June 2026 deadline approaches, the travel industry will be watching closely. Only time will tell if AOT’s infrastructure improvements will justify the higher price tag, or if Tony Fernandes’ warning will come true as budget travelers seek cheaper skies.
