July 21 (Bloomberg) -- One-Two-Go Airline, Thailand's second-biggest budget carrier, will suspend flights for about two months due to fuel costs that have almost doubled in a year.

The carrier, owned by Orient Thai Airline Co., will ground its planes between July 22 and Sept. 15, the company said in an e-mailed statement yesterday. One-Two-Go 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 as record jet-fuel prices hurt costs. 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 gone out of business this year.

A One-Two-Go plane skidded off the runway in Phuket in September killing at least 89 people. The airline flies 16 aircraft and 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 Airways International Pcl to trim operations while Indonesia's PT Adam Skyconnection Airlines and Oasis Hong Kong Airlines Ltd. ceased operations this year.

Udom Tantiprasongchai, Orient Thai's chief executive officer, didn't reply to calls made to his office today.

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

Last Updated: July 20, 2008 22:49 EDT