Vietnam Airlines proposes to the Ministry of Transport to adjust floor fares | Business

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The carrier also suggested the finance ministry submit a report to the prime minister for approval of a plan to grant a 100% environmental tax exemption on jet fuel in 2022.

The Covid-19 pandemic had a significant impact on the VNA in 2021. The airline’s passenger transport production was only 27% of the 2019 target. Now that the aviation industry is starting to recover from the pandemic, the price of gasoline has continued to rise.

The price of jet fuel has risen from $73 per barrel in 2021 to over $100 per barrel and has steadily increased to as high as $130. It is expected to hit a new all-time high of US$150 as the Ukraine crisis continues to affect oil prices. If this price is maintained this year, the additional cost will be 5,700 billion VND; and the cost will reach VND 9.120 billion if the price of jet fuel is US$160 per barrel, which will lead to a bigger loss than expected.

VNA has also proposed to relevant ministries and departments to study and publish fuel surcharge policies on domestic routes. As a first step, the carrier suggested to the Ministry of Transport to consider adjusting the ceiling price of air tickets, creating favorable conditions for the airline to offer flexible air ticket prices, compensate for the increase in costs due to the increase in the price of gasoline, improves the quality of service and meets the needs of the consumer.

By Minh Anh – Translated by Kim Khanh

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