Bangkok Aviation Fuel Services Plc (BAFS) has projected strong growth for 2024, citing the resurgence of Thailand’s aviation sector. The company, which provides refueling services at Suvarnabhumi and Don Mueang airports, anticipates benefiting from the increasing travel demand and rising jet fuel consumption. This optimistic outlook reflects the industry’s rebound after a period of stagnation during the pandemic.
BAFS forecasts an impressive 18% year-on-year revenue increase, reaching 3.6 billion baht in 2024. The surge in air travel is a primary driver of this growth, leading to a significant increase in jet fuel demand. Data from the Department of Energy Business shows a marked rise in jet fuel usage in Thailand from January to June 2024. This growth was fueled by a combination of factors, including the peak tourist season, a visa-free scheme, and a spike in flights during extended holidays. As a result, jet fuel consumption climbed to 15.7 million liters per day in the first half of 2024, up from 13.5 million liters per day in the previous year. BAFS expects a 16% increase in jet fuel sales year-on-year, projecting total sales of 5 billion liters in 2024, compared to 4.3 billion liters in 2023.
The Bank of Thailand has reported a positive trend in foreign tourist arrivals, with 3.1 million visitors in July 2024, exceeding the previous month’s figure of 2.7 million. This increase was primarily driven by tourists from Malaysia, China, Russia, and Europe, while there was a decline in visitors from the Middle East and India.
In response to the growing number of air travelers, Airports of Thailand (AoT) has undertaken ambitious plans to enhance Suvarnabhumi Airport’s facilities. By 2031, AoT aims to accommodate up to 80 million passengers annually. Last September, AoT inaugurated a new satellite terminal at Suvarnabhumi, increasing the airport’s annual passenger capacity from 45 million to 60 million. AoT is also revising its master plan for a ten-year expansion to align with the government’s goal of placing the airport among the top 20 globally within five years.
The projected growth in the aviation sector is expected to have far-reaching implications for Thailand. This resurgence will create new opportunities for businesses operating within the industry and contribute to economic growth. As air travel continues its upward trajectory, BAFS and other companies within the aviation sector are poised to benefit from the expanding market and the increasing demand for their services.
