Vietnamese airlines face multimillion-dollar losses

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Although local air traffic has fully recovered and even increased compared to pre-Covid-19 times, flag carriers continue to face many challenges due to the slow global market recovery.

As Viet Thang explained at a Transport Ministry meeting to assess performance in the first six months of the year, fuel costs currently account for up to 50 percent of overall airline spending.

Therefore, the Aviation Administration has proposed that the government continue to adopt policies to support the aviation industry, especially in the reduction of taxes.

Vietnam Airlines’ deputy general manager, Trinh Hong Quang, for his part, asked the cabinet and the transport ministry not to levy a fuel and oil surcharge on the price of tickets in order to minimize the difficulties for the sector. In another of the interventions, Deputy Chief of the Aviation Administration’s Transportation Department, Vu Hong Quang, said that in the first six months of 2022, more than 2,370,000 international passengers traveled to the Vietnam.

However, he said key markets such as South Korea, Japan, China and Chinese Taipei are still enforcing strict policies to prevent and control the Covid-19 pandemic, which is slowing passenger flow.

Thus, according to Hong Quang, it will be necessary in the near future to work with the competent authorities of each country in favor of the complete resumption of activities in the sector.

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