Vietnam raises domestic flight ticket ceiling

The new policy, which will be applied starting March 1, 2024, will see the maximum standard ticket prices for domestic flights under 500 km set at VND1.7 million.

For flights between 500 and 850 km, the maximum price will be VND2.25 million, an increase of VND50,000. For flights between 850 and 1,000 km, the maximum ticket price will be VND2.89 million, an increase of VND100,000.

Flights between 1,000 and 1,280 km will have a maximum ticket price at VND3.4 million, an increase of VND200,000, and for flights spanning at least 1,280 km, the maximum ticket price will be VND4 million, an increase of VND250,000.

The maximum prices do not include VAT or other fees for the airport.

The Ministry of Transport said the adjustments to domestic flight ticket price ceilings were due to changes to factors that make up a ticket’s price, especially rising fuel prices and exchange rates. In 2022, Jet A1 fuel prices had surpassed $150 per barrel, much higher than the price of $60 per barrel back in 2015.

Last year, domestic airlines proposed for domestic flight ticket price ceilings to be raised, as the ceilings had been in place since 2015 and current situations make them no longer appropriate, requiring adjustments.

In June, the Vietnam Aviation Business Association proposed to remove the flight ticket price ceiling, saying it “distorts the supply-demand relationship of the aviation market” and “negatively affects airlines’ business activities.”