With unrest causing a 50% drop in bookings, Thai AirAsia has cut flights between Bangkok and Rangoon from seven to three flights a week.
CEO Tassapon Bijleveld said the airline will only resume full operations if the situation in Rangoon "returns to normal".
"Many Western tourists have cancelled trips from Thailand into Burma, while many Thais are seeking to switch to other destinations. Others are waiting to see what happens," Tassapon said.
As it is considered a special incident, the airline will return money to those who have made advance bookings and later cancelled.
