Vietnam's aviation sector faces a significant cost shock as fuel prices surge due to Middle East disruptions. The Civil Aviation Authority has proposed a fuel surcharge mechanism for domestic flights starting April, with fares potentially rising up to 17 percent. Jet A1 fuel prices have nearly doubled from pre-conflict levels, reaching $234 per barrel in late March. Under the proposal, surcharges would be tiered by route distance and fluctuate with fuel costs. On popular routes like Hanoi to Da Nang, passengers could see ticket prices jump from approximately $110 to $124 per one-way flight. The three-month surcharge mechanism aims to help airlines manage the crisis while maintaining service levels. This represents a critical test of Vietnam's aviation market as global energy markets remain volatile.
