Airlines to get fee cuts as fuel price volatility bites

April 23, 2026 - 07:58
In the spirit of burden-sharing between service providers and users the Civil Aviation Authority of Việt Nam (CAAV) has underscored the need to cut air navigation charges and aircraft take-off and landing fees on domestic routes.

 

Aircraft operate at Nội Bài International Airport in Hà Nội. VNA/VNS Photo Việt Hùng

HÀ NỘI — Vietnamese airlines are set to see operating costs ease as air navigation and take-off and landing service fees are reduced, helping to share the financial burden amid volatile fuel prices.

The move comes as part of efforts to respond promptly to unusual market fluctuations and ensure stable aviation operations. In the spirit of burden sharing between service providers and users, the Civil Aviation Authority of Việt Nam (CAAV) has underscored the need to cut air navigation charges for domestic flights as well as fees for aircraft take-off and landing on domestic routes. The proposal is based on a rebalancing of airport concession fees.

According to a CAAV report submitted to the Ministry of Construction on measures to support airlines amid fluctuations in Jet A-1 fuel prices, several enterprises, including Việt Nam Air Traffic Management Corporation (VATM) Airports Corporation of Việt Nam (ACV) Phú Quốc International Airport and Vân Đồn International Airport, are currently benefiting from a 50 per cent reduction in airport concession fees.

The policy is in effect from July 1, 2025, to December 31, 2026.

CAAV estimates that in 2026 VATM will see concession fees reduced by around VNĐ69 billion (US$2.62 million). Airport operators, including ACV, are expected to receive reductions of about VNĐ132 billion ($5.01 million) while Vân Đồn and Phú Quốc airports will see cuts totalling roughly VNĐ8 billion ($303,950).

Regarding a proposal to cut air navigation service charges by 15 per cent and take-off and landing fees by 20 per cent for domestic flights over a three-month period until June 30, 2026, VATM has suggested that such reductions should not be implemented at this stage.

April and May are typically the low season for air travel and any assessment of airline performance based on capacity cuts on underperforming routes during this period would not accurately reflect the impact of fuel price fluctuations, VATM noted.

Looking ahead, if Jet A-1 fuel prices continue to surge, VATM said it will closely monitor developments conduct comprehensive impact assessments and promptly report to regulators. It will also implement service fee reductions in line with decisions by competent authorities to ensure compliance with regulations and a balance of interests among stakeholders. — VNS

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