ACV considers fee reductions to ease airline cost pressures

ACV considers fee reductions to ease airline cost pressures

ACV is weighing cuts to aviation service fees as jet fuel prices rise again amid Middle East tensions.

Aircraft operate at Cát Bi International Airport in Hải Phòng City. — VNA/VNS Photo Hoàng Ngọc

Airports Corporation of Vietnam is considering reductions in selected aviation service fees as higher jet fuel prices and global uncertainty add fresh pressure on airlines operating in the country.

The State-owned operator said the proposed adjustments would apply to services subject to State-regulated price ceilings and are being developed following operational reviews across the airport network.

The move is aimed at helping airlines offset rising fuel costs, sustain flight operations and improve efficiency during a period of heightened market volatility.

Separately, the Vietnam Air Traffic Management Corporation is working to optimise airspace use and improve traffic flow, while coordinating with regional partners to support more efficient flight routes.

The measures are expected to reduce fuel consumption and operating costs for airlines, particularly as geopolitical tensions continue to disrupt established flight paths.

The Civil Aviation Authority of Vietnam said renewed tensions in the Middle East, following unsuccessful talks between the United States and Iran, have raised concerns over potential energy supply disruptions.

Earlier this week, global aviation fuel markets resumed an upward trend after a prior correction. In Asia, Jet A-1 (FOB Singapore) rose to about US$214–216 per barrel, up more than $3 from the previous session, with gains also seen in South Korea and the Gulf.

The average Singapore jet fuel benchmark (MOPS) has meanwhile climbed to the top tier used to calculate airline fuel surcharges for May, underscoring the rapid escalation in fuel costs. 

Bizhub