Airlines plan promotions after new jet fuel tax drives up fares

Airlines are preparing more marketing campaigns and promotions to maintain ticket volumes after the implementation of a new jet-fuel tax is set to drive up air fares. ​Major carriers doubt that the higher tax on jet fuel will affect their business in the long term, but competition is expected to be even tougher, especially for budget airlines operating domestically. “It is expected to halt [affect ticket] bookings for a short period, but the impact is not clear yet. It may take two weeks to see the real impact. “But higher costs will force airlines into more competition, which will focus more on fares,” Tassapon Bijleveld, chief executive officer of Thai AirAsia, said on February 2. He added that Thai AirAsia might double the frequency of promotions or packages to twice per week soon.

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