Duty-free concession revenue drags down Airports of Thailand

By Kevin Rozario | Friday, 21 November 2025 19:31

Airports of Thailand BBK Suvarnabhumi Airport

Bangkok’s Suvarnabhumi Airport. [Credit: Kylle Pangan/Unsplash]

Airports of Thailand (AOT) saw its stock slide by -3% today as net profit for FY25 (ending September) declined by -5.5% despite a revenue rise of +1.1%. The biggest drag came from duty‑free concessions, down -7.6% year-on-year (YoY), which were affected by regulatory changes, softer intra-regional tourism, and weaker outbound spending.

AOT operates six airports, including Bangkok’s Suvarnabhumi and Don Mueang, and they collectively handle about 90% of Thailand’s total passenger volume annually. The company said that “despite facing uncertainties from the global economy, intense competition in Asia-Pacific, and a negative image of Thailand’s tourism”, the total number of passengers carried in FY25 was 126 million passengers, an increase of +5.6% YoY, comprising 76.6 million international and 49.4 million domestic.

However, Chinese arrivals, Thailand’s largest inbound market, have fallen sharply this year by about -30% so far, while other short‑haul markets like Hong Kong, South Korea, Taiwan, Vietnam, Laos, and Cambodia, have also seen double‑digit declines. Long-haul traffic offset these falls.

In this light, and with the impact of contract renegotiations, it is no surprise that duty-free revenue was hit. The non-aeronautical income stream – in which the concessions component sits alongside office/property rents and service revenue – fell by -6.9% to THB21,352 million/$659 million* mostly due to the decline in concessions revenue (see table and chart below).

AOT’s FY25 non-aeronautical revenue breakdown.

Concessions are vital to AOT’s wellbeing

The concessions segment remains the backbone of the non-aeronautical division with a 63% share, so its contraction impacted the entire business. Total non‑aeronautical revenue fell to THB33,632 million/$1.04 billion.

Another likely reason for the decline, after several years of solid growth, was the ban on arrivals duty‑free shopping in August 2024, impacting eight international airports: Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, U‑Tapao, Samui, and Krabi. Meanwhile, VAT/customs reforms on low‑value goods have created additional headwinds.

It is expected that tourism softness will continue, while political uncertainty and regional tensions remain, which means that AOT will continue to be under pressure across all its revenue streams, but especially commercial.

AOT’s strategic response includes incentive schemes for airlines, marketing funds to stimulate new routes, and ongoing discussions with its duty‑free concessionaire, King Power Thailand, to stabilise the business. Given that AOT’s non‑aeronautical revenue has fallen to 50% of the company’s total sales (from 54% in the previous year), a significant drop, those negotiations remain a priority.