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Airline passenger service fees increase stated to yield additional B3bn for AOT

Thai Civil Aviation Authority (CAAT) is anticipating a decision on elevating Passenger Service Charge (PSC) by October, stating that a significant shift in PSC could swell Airports of Thailand's (AOT) yearly income by approximately three billion baht.

Increase in passenger service fees benefits AOT to the tune of an additional B3 billion
Increase in passenger service fees benefits AOT to the tune of an additional B3 billion

Airline passenger service fees increase stated to yield additional B3bn for AOT

The Civil Aviation Authority of Thailand (CAAT) is proposing a significant increase in the Passenger Service Charge (PSC) at Airports of Thailand (AOT)-managed airports. The suggested hike, approximately 100 baht per international departing passenger, could boost AOT’s annual revenue by around three billion baht from international passengers alone, with an additional two billion baht possible from a similar increase for domestic passengers.

Currently, AOT charges 730 baht for international departures and 130 baht for domestic departures. This proposed increase aims to align Thailand’s PSC rates with international benchmarks, as charges at Thai airports are significantly lower than regional hubs like Singapore’s Changi Airport, which charges about 1,400–1,500 baht per passenger.

The PSC has remained unchanged for years, and the current rates do not fully cover actual airport operating costs. This situation restricts airport development and infrastructure investment, especially at Suvarnabhumi Airport, where upgrades and expansion projects are needed to better position AOT as a regional aviation hub.

An initial small increase (about 5 baht) approved for August 2025 is expected to add 200–300 million baht per year to AOT’s revenue. The larger planned increase by October or November 2025 (around 100 baht) would bring in significantly more revenue, supporting infrastructure development and facility improvements.

Passenger feedback has been considered, and surveys indicate most travelers are accepting of the increase if it leads to better airport facilities and services. The final decision is pending a joint CAAT and AOT study expected by October 2025, with formal proposals subject to review and approval by the Civil Aviation Board.

It's worth noting that the AOT has been advocating for this principle for the past 5-6 years. The authority is also planning to introduce charges for transit and transfer passengers, currently exempt. The CAAT is ready to consider the AOT's proposal regarding the charges for transit and transfer passengers.

PSC calculations vary globally, but all follow International Civil Aviation Organization (ICAO) standards. The AOT must submit detailed documentation and comparative data with similar-tier international airports to support the case for introducing charges. The CAAT plans to propose a five-baht-per-person PSC increase to the Civil Aviation Board (CAB). The transport minister is expected to submit a new nominee to the cabinet shortly, enabling the CAB to convene and deliberate.

The decision to increase the PSC is expected to have a substantial impact on AOT’s revenue and airport development. If approved, the five-baht increase could generate an additional 200–300 million baht annually, while the proposed 100-baht rise could bring in significantly more revenue, supporting infrastructure development and facility improvements at AOT-managed airports.

The proposed increase in the Passenger Service Charge (PSC) could boost the finance of the Airports of Thailand (AOT), potentially aligning Thailand's PSC rates with international benchmarks and increasing revenue from both international and domestic passengers. This increase, initially planned by October or November 2025, is considered necessary to support business development and infrastructure investment, especially at Suvarnabhumi Airport.

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