The carrier also suggested that the Ministry of Finance submit a report to the Prime Minister for an approval for a plan on providing 100 percent environment tax exemption on jet fuel in 2022.
The Covid-19 pandemic has had a significant impact on the VNA in 2021. The airline’s passenger transport output accounted for only 27 percent of the 2019’s target. Now when the aviation industry starts recovering from the pandemic, the price of gasoline has increased incessantly.
Jet fuel price has hovered from US$73 per barrel in 2021 to more than US$100 per barrel and has continuously risen up to US$130. It is expected to hit a new record of US$150 as the Ukraine crisis continues to affect oil prices. If this price is maintained this year, the additional increased cost will be VND5,700 billion; and the cost will hit VND9,120 billion if jet fuel is priced US$160 per barrel, making a larger-than-expected loss.
VNA has also proposed the ministries and competent departments to study and issue policies of fuel surcharge fees on domestic routes. At first, the carrier suggested the Ministry of Transport consider the adjustment of the price ceiling for air tickets, creating favorable conditions for the airline to offer flexible flight ticket prices, offset increased costs due to the rise of gasoline price, improve service quality and meet customer needs.
