Airport fee hike to raise airfares, fund infrastructure upgrades: AOT

Airports of Thailand has acknowledged that the recent increase in International Passenger Service Charges (PSC) will inevitably lead to higher airfares, but insists the additional revenue is intended for critical infrastructure expansion rather than to offset lost concession income.

The state-controlled airport operator recently announced a significant increase in the international departure fee, from 730 baht to 1,120 baht per person. The new rate will apply to all six airports under AOT’s management and is scheduled to take effect on June 20.

Speaking yesterday, AOT President Paweena Jariyathitipong expressed confidence that the increase would not significantly dampen passenger demand.

Paweena also sought to dismiss speculation that the fee hike is intended to compensate for lost revenue following the termination of duty-free concessions held by King Power.

She emphasised that the funds are strictly designated for the agency’s ambitious long-term development plans.

The fee adjustment comes as AOT prepares for a massive capital expenditure cycle to modernise its facilities, beginning with Suvarnabhumi Airport, for which the agency has earmarked 12 billion baht for the East Expansion terminal and a further 20 billion baht for soil improvement works at the site of the future South Terminal.

The investment plan also includes a 30-billion-baht Phase 3 expansion of Don Mueang Airport and a 10-billion-baht Phase 1 expansion of Phuket International Airport, aimed at ensuring the country’s aviation infrastructure can meet long-term demand.

Suvarnabhumi Airport currently handles approximately 46 million passengers annually.

AOT projects that, once upgrades across all six airports are completed, their combined capacity will rise to 180 million passengers per year by 2034.