Despite volatile fuel prices and sluggish demand, Vietjet Thailand said the aviation situation remains manageable as it is still ramping up capacity and building a new regional hub in Udon Thani.

Chief executive Woranate Laprabang said the fuel price outlook remains volatile as the conflict in the Middle East continues, despite earlier reports of a US-Iran deal that temporarily eased prices.

He said travellers are expected to remain cautious with spending for the remainder of the year, particularly during the low season as many continue to adopt a wait-and-see approach.

However, the airline still expects a positive performance in the fourth quarter, banking on the high season as Thailand remains Asia's leading tourism destination, said Mr Woranate.

Vietjet Thailand operates a fleet of 11 Boeing737 Max 8 aircraft and 12 Airbus A320 and A321 planes. By the end of this year, the airline expects to operate 25 Boeing737 planes and four A320 aircraft, with the target to expand its fleet to 50 jets by 2028.

The airline reduced capacity on some routes following the Middle East conflict, particularly to India and China, but has already restored some services and increased domestic capacity.

For the cool season, Vietjet Thailand plans to increase frequencies to Osaka and Tokyo, as well as launch a new Phuket-Taipei-Fukuoka route.

NEW ISAN HUB

The airline also plans to develop Udon Thani as a hub for the northeastern region, aiming to capture a larger share of the domestic market as its fleet continues to expand.

According to the Airports Department, Udon Thani airport handled more than 2 million passengers last year. The city is also scheduled to host a Horticultural Expo from November until March next year.

The airline introduced a new check-through service called "SkyConX" at Udon Thani airport for passengers travelling to Japan, Taiwan and Vietnam via Suvarnabhumi airport. The service allows passengers to check in, drop off their baggage and complete immigration formalities at their departure airport before continuing to their final destination.

Vietjet Thailand plans to increase the frequency of its Bangkok-Udon Thani service from two to four daily flights by September. If demand remains healthy, it might increase services to five flights a day, said Mr Woranate.

The airline is studying the feasibility of launching a direct route between Udon Thani and a Vietnamese city such as Ho Chi Minh City to promote two-way tourism, he noted.

Government plans to promote regional airports should include incentives for airlines, such as reductions in landing fees and air navigation charges, said Mr Woranate.

Cities should also improve facilities for foreign visitors by expanding foreign language signage and develop new attractions and festivals, he said.

The airline wants to extend its check-through service to Khon Kaen and Surat Thani later this year and in early 2027.

Deputy Transport Minister Phattrapong Phattraprasit said Udon Thani, Khon Kaen and Surat Thani airports, operated by the Airports Department, are undergoing operational upgrades to accommodate direct international flights in line with International Civil Aviation Organization standards.

Another airline has already approached Udon Thani airport about launching a new route from Kunming in China, said Mr Phattrapong.