The Association of Asia Pacific Airlines (AAPA) has issued a statement to urge governments to increase support for the aviation sector due to severe strains on operations caused by escalating global conflicts.
Rising global conflicts in recent years have reduced the availability of safe airspace for airline operations, increasing potential safety risks to civil aircraft operating in or near conflict-affected airspace and, in some cases, contributing to interference with satellite navigation systems.
The escalation in hostilities since 28 February 2026 has further increased operational risks and costs for airlines. Safe pathways along the Asia–Europe air corridor are further constrained by conflicts not only in the Middle East but also over Russia, Ukraine, Afghanistan and Pakistan.
Higher jet fuel prices and insurance premiums, together with increased operating costs from longer flight routings, are placing additional strain on the airline industry. Flight crews and operators rely on timely intelligence, robust risk assessments and clear, state-issued airspace information when operating near conflict-affected regions.
Governments have to consider measures to support the industry
If the hostilities persist, governments should consider measures to support the industry in mitigating operational challenges and maintaining global air connectivity, which remains vital to economic activity and social wellbeing.
Governments can support airlines by providing timely threat information, maintaining clear and responsive airspace restrictions, facilitating coordinated repatriation arrangements, and considering measures to alleviate extraordinary operational costs if the situation is prolonged.
Government–industry collaboration and mutual support were crucial in managing airline operations during previous crises, such as the September 11 attacks and the COVID-19 pandemic. Asia Pacific airlines will continue working closely with governments and industry partners to sustain global air connectivity during this challenging period.
Thai Airways to consider crisis measures
At a coming Thai Airways’ board meeting, near-term survival measures will be discussed including tighter cost control and a delay to non-essential investment, until the situation becomes clearer as reported by The Nation.
Thai Airways is seeking to preserve as much as possible of its 120 billion Thai baht (US$3.7 million) cash position as uncertainty over fuel prices and demand continues to grow.
Thai Airways has also gradually increased air fares by 10-15% to reflect higher fuel costs. If the conflict drags on and oil prices climb further, the airline will need to revise its plans more aggressively and adjust ticket prices to better cover costs.
Demand shows early signs of strain
Although Thai Airways’ average passenger load factor remains strong at around 90%, the Middle East crisis has started to affect travel sentiment.
Advance bookings have fallen by about 10% from the same period last year, suggesting that higher costs and broader uncertainty are beginning to weigh on passengers’ travel decisions.
For now, the situation was still less severe than during the Covid-19 crisis, when airlines were unable to operate and revenue collapsed. Thai Airways could still maintain flights on other routes despite the disruption.
Revenue target at risk if crisis drags on
The airline had previously set a revenue target of Bt200 billion (US$6.1 billion) this year, representing growth of about 5% from the previous year. A prolonged crisis would inevitably put that goal under pressure but cash on hand remained the most important safeguard for an airline facing prolonged uncertainty.
Airlines worldwide are closely watching the Middle East conflict because it has pushed up energy prices and raised concerns over fuel supply and travel demand.
If the crisis worsens, the government will have to step to assist and support the industry, not only in Thailand but in the other affected countries.
