Civil Aviation Authority of Vietnam (CAAV) has submitted a proposal to the Ministry of Construction to introduce a fuel surcharge on basic economy-class domestic tickets for a limited period of three months.
The proposal comes amid volatility in Jet A-1 fuel prices linked to military tensions in the Middle East. Fuel currently accounts for around 35 to 40 per cent of airlines’ total operating costs, with prices estimated at about USD 200 per barrel, roughly double previous levels.
The Civil Aviation Authority proposes a domestic aviation fuel surcharge (Photo: Tien Tuan).
Under the plan, CAAV would publish Jet A-1 prices based on reports from domestic fuel suppliers, referencing the average trading price on the Singapore market over the preceding month.
The surcharge would be calculated based on actual fuel costs per passenger across domestic routes of varying distances. It would reflect the additional cost compared with a baseline fuel price of USD 90 per barrel, with projected scenarios ranging from USD 100 to USD 200 per barrel.
For routes between 500km and 850km, the surcharge could reach VND 297,000 per ticket if Jet A-1 prices hit USD 220 per barrel, raising the fare cap from VND 2.89 million to VND 3.16 million.
On routes of 1,000km to 1,280km, the surcharge is estimated at VND 450,000 per ticket at USD 220 per barrel, rising to VND 553,000 if prices exceed USD 250 per barrel. This could push the current fare ceiling of VND 3.4 million to nearly VND 4 million.
For routes longer than 1,280km, such as Hanoi to Phu Quoc, the surcharge could reach up to VND 680,000 per ticket if fuel prices exceed USD 250 per barrel, increasing the maximum fare from VND 4 million to nearly VND 4.7 million.
If approved, the measure would mark a temporary adjustment to help airlines offset rising fuel costs while maintaining operations.
