Low-cost carriers (LCCs) have played a transformative role in reshaping Thailand’s air travel landscape by making flying more affordable and accessible, particularly for leisure and budget travellers. Increased competition among budget airlines over the past decade has driven down airfares, stimulated demand from both domestic and international markets, and expanded connectivity between major urban centres, island gateways and secondary cities. This wider network has opened up more destinations across the country and strengthened the overall tourism ecosystem, supporting airlines, hotels, tour operators and related businesses.
The Asia Pacific region leads global traffic growth and is projected to achieve net profits of $6.6 billion in 2026, up from $6.2 billion in 2025. The net profit margin remains at 2.3%, with profit per passenger at $3.20, down slightly from $3.30 in 2025. Asia Pacific airlines express optimism for continued air transport growth through 2026, citing resilient regional economies and infrastructure investments. Overcapacity remains a challenge as international traffic recovery lags domestic markets in some countries.
Asia Pacific remains the largest contributor to global traffic growth. Load factors are projected to reach 84.4% in 2026, an all-time high for the region, indicating strong underlying demand even amid yield pressures.
Following the COVID-19 pandemic, Thailand’s air transportation industry has experienced a strong recovery in aircraft movement during 2022–2023, driven largely by a rebound in passenger volumes. While total movements have not yet returned to pre-pandemic levels, international aircraft traffic in particular has shown notable growth, reflecting renewed confidence in air travel and the importance of regional and international connectivity to Thailand’s tourism revival. Thailand’s aviation sector demonstrates remarkable resilience and diversification as it enters 2026. The mix of established full-service carriers, aggressive low-cost operators, and specialized regional airlines creates a competitive environment that benefits both passengers and the broader tourism economy.
1. Thai AirAsia
Thai AirAsia is one of the leading low-cost carriers in Thailand and Southeast Asia and forms part of the wider AirAsia Group, which pioneered the low-cost travel model in the region. The airline operates an extensive network of domestic and international routes, connecting major Thai cities such as Bangkok, Chiang Mai and Phuket with regional hubs across Asia. Its strategy focuses on high-frequency, competitively priced services that stimulate travel demand from both local and international travellers.
The airline offers broad domestic coverage alongside strong regional connectivity, operating on a simple low-cost fare structure with optional paid add-ons such as checked baggage, seat selection and in-flight meals. Frequent promotional fares further enhance its appeal, making short-notice and spontaneous travel more affordable for leisure and budget-conscious travellers.
2. Thai Lion Air
Thai Lion Air is the Thai affiliate of the Indonesian Lion Air Group and operates as a cost-efficient alternative within Thailand’s competitive LCC market. Based primarily at Don Mueang International Airport in Bangkok, it serves a wide range of domestic and regional destinations across Asia, competing strongly on price and flight frequency.
Founded in 2013, the airline now operates a fleet of Boeing aircraft serving approximately 50 destinations. It is often recognised for offering relatively generous baggage policies and competitive ancillary options compared with some rivals, adding value for leisure and group travellers. Through frequent promotions and partner-led discounts, Thai Lion Air helps unlock more affordable access to smaller Thai cities and regional centres, supporting tourism dispersal and travel trade activity.
3. Nok Air
Nok Air is a well-established domestic low-cost airline in Thailand, known for its distinctive branding and focus on internal connectivity. The airline links Bangkok with key tourist hubs and provincial airports, making it easier for travellers to move between beach, cultural and heritage destinations.
It operates a strong feeder network within Thailand and is also known for offering occasional bundled services that combine flights with bus or ferry transfers to island destinations, creating smoother end-to-end journeys. As a result, Nok Air plays an important role in supporting domestic tourism, particularly weekend getaways, short breaks and regional tour itineraries.
4. Thai VietJet Air
Thai VietJet Air is the Thai affiliate of VietJet Air, a major Vietnamese low-cost carrier. Established in 2014, it has grown into a dynamic LCC connecting Thai cities domestically and internationally to destinations including India, Vietnam and Taiwan, and competes strongly on price for cross-border leisure routes.
The airline operates dozens of domestic and short-haul international services and offers tiered fare bundles such as Eco, Deluxe and SkyBoss, providing varying benefits including baggage allowances and priority services. By offering cost-competitive flights from neighbouring countries, Thai VietJet Air plays a role in stimulating inbound demand and strengthening Thailand’s position as a regional tourism hub.
5. Thai AirAsia X
Thai AirAsia X is the long-haul, low-cost affiliate of AirAsia, focusing on extended international routes connecting Thailand with destinations such as Japan and other parts of Asia. The airline operates long-haul LCC services from Don Mueang Airport using Airbus widebody aircraft, extending the low-cost model beyond short-haul travel.
By expanding its international network and offering more affordable long-haul options, Thai AirAsia X supports tourism growth by opening budget-friendly access to distant markets for both leisure and business travellers, further enhancing Thailand’s global connectivity.
Low-cost carriers are central to Thailand’s travel trade ecosystem. By expanding air access, lowering travel costs and increasing seat capacity, LCCs enable tour operators, DMCs and OTAs to create more affordable and flexible travel packages linking multiple destinations. Tourism boards and hotel groups benefit from stimulated demand and improved visitor dispersal, while MICE and incentive planners gain access to cost-efficient airlift that frees up budget for on-ground experiences. Collectively, LCCs act as catalysts for volume tourism, destination development and long-term competitiveness within Thailand’s tourism industry.
