Thai AirAsia is urging the government to take immediate action to revitalize the Chinese tourism market, which has been slow to recover due to travel safety concerns. In response, the airline is diversifying its strategy by expanding domestic routes and targeting alternative international markets.
Santisuk Klongchaiya, chief executive of Thai AirAsia, noted that China once accounted for over 30% of the airline’s international route capacity in 2019. However, that figure has since declined to 17%, as Chinese travelers increasingly opt for destinations such as Japan, Malaysia, and Vietnam. The slowdown is attributed to concerns over online scams and overall travel safety in Thailand.
While the Tourism Authority of Thailand aims to attract 8 million Chinese visitors in 2025, the first quarter saw only 1.5 million arrivals, suggesting a year-end total closer to 6 million. The trend has also affected other Chinese-speaking markets, including Hong Kong, Macau, and Taiwan.
To counteract the downturn, Mr. Santisuk emphasized the need for coordinated efforts between the public and private sectors. He called on the government to allocate funding for promotional campaigns, collaborate with Chinese online travel agencies, and engage influencers to rebuild confidence.
As part of its strategic shift, Thai AirAsia is strengthening its presence in South Asia, where capacity has risen to 18% of total international routes, up from 8% in 2019. The airline also continues to grow within Southeast Asia and is exploring new fifth freedom routes—flights that operate between two foreign countries via a third-party hub. Existing fifth freedom services include flights from Thailand to Japan via Taiwan, with plans to introduce similar routes through Hong Kong.
Domestically, Thai AirAsia aims to increase its share of the local market to 65% this year, up from 60% in 2024. The airline is expanding operations at Suvarnabhumi Airport, where it plans to introduce 11 domestic routes. Mr. Santisuk highlighted that despite lower ticket prices, domestic flights offer profit margins double those of international routes. He also noted a rising trend of foreign travelers using domestic flights, with their share increasing from 20% in 2019 to 24% last year.
