July 21 (Bloomberg) -- One-Two-Go Airline, Thailand's second-biggest budget carrier, will suspend operations for about two months after fuel prices almost doubled in a year and a crash in September killed 90 people.

The carrier will ground its planes from tomorrow until Sept. 15, it said in an e-mailed statement yesterday. The Orient Thai Airline Co. unit will ``reorganize'' its operation and staff before resuming flights, it said.

One-Two-Go is at least the fourth airline in the Asia- Pacific region to suspend operations this year amid record jet- fuel prices. Industrywide losses may total more than $6.1 billion this year, the worst since 2003, according to the International Air Transport Association. At least 25 airlines have already shut down worldwide this year.

``Any airline with a weak financial position has to go out of business,'' said Terapatr Mathanukraw, a Bangkok-based analyst at Seamico Securities Pcl. ``The stronger and bigger carriers also have to lower their costs by cutting flights in order to survive until another boom cycle.''

Udom Tantiprasongchai, Orient Thai's chief executive officer, didn't reply to calls made to his office today. The closely held company competes with Thai Airways International Pcl and Thai AirAsia Co., the country's biggest low-cost airline.

A One-Two-Go plane skidded off the runway, broke into two and burst into flames in Phuket in September, killing 90 people, according to the Web Site of Flight Safety Foundation. It was Thailand's worst crash in about a decade.

The airline flies 16 aircraft and operates more than 200 domestic flights a week, capable of carrying more than 100,000 passengers a month, according to its Web site.

Jet fuel in Singapore trading rose 0.7 percent to $167.25 a barrel on July 18, lower than the record $181.85 it reached on July 3. Fuel is the biggest expense for most Asian airlines.

Higher fuel prices have caused airlines including Qantas Airways Ltd. and Thai Air to trim operations while Indonesia's PT Adam Skyconnection Airlines and Oasis Hong Kong Airlines Ltd. ceased operations this year.

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.

Last Updated: July 21, 2008 00:40 EDT