Vietnam Aviation Authority Proposes 15-20% Fee Cuts for Airlines to Ease Cost Pressure

Overview

The Vietnam Civil Aviation Authority (Cục Hàng không Việt Nam) has proposed new fee reductions for airlines, including a 15% cut in flight operation service fees and a 20% cut in takeoff/landing fees for domestic flights, to be applied for three months until June 30, 2026. This regulatory support aims to help carriers like Vietnam Airlines (HVN), Vietjet (VJC), and Vietravel Airlines (VTA) manage high fuel costs, which have added significant operational pressure in 2026.

Key Facts

• Proposed 15% reduction in flight operation service fees for domestic flights.
• Proposed 20% reduction in takeoff/landing fees for domestic flights.
• Fee cuts would apply for three months, until June 30, 2026.
• Earlier tax exemptions in March-April 2026 saved Vietnam Airlines (HVN) approximately VND 105 billion.
• Vietjet (VJC) saved about USD 4 million from tax exemptions in April 2026, equivalent to 16% of its additional fuel costs.
• Vietnam Airlines estimates additional costs in 2026 due to fuel prices at VND 11,000-27,000 billion, depending on scenarios.
• Fuel prices in April 2026 were around USD 195 per barrel, increasing Vietjet’s monthly costs by USD 24 million.

What Happened

According to a proposal from the Vietnam Civil Aviation Authority, airlines operating domestic flights would receive a 15% reduction in flight operation service fees and a 20% reduction in takeoff/landing fees, effective for three months until June 30, 2026. The authority stated that this measure is intended to support airlines in reducing cost pressures, particularly from high aviation fuel prices that have persisted without signs of cooling. The proposal follows earlier government support policies, including exemptions from environmental protection taxes and import taxes on jet fuel implemented in March and April 2026.

The article cites reports from Vietnam Airlines indicating that, depending on fuel price scenarios, the airline’s additional costs in 2026 are estimated at VND 11,000-27,000 billion. Previous tax exemptions saved Vietnam Airlines about VND 105 billion. For Vietjet, fuel costs in April 2026 increased by USD 24 million, with tax exemptions providing relief of approximately USD 4 million. The Civil Aviation Authority emphasized that airlines continue to need support from competent authorities to overcome difficulties and maintain stable operations.

Market Context

Vietnam Airlines (HVN) closed at VND 23 on April 15, 2026, up 2.24% with volume of 1,115,400 shares on the HOSE exchange. Vietjet (VJC) closed at VND 176, up 5.82% with volume of 2,544,700 shares on the HOSE exchange. The aviation sector in Vietnam has faced volatility due to fluctuating fuel costs and regulatory changes, with recent price movements reflecting investor attention to cost-relief measures. The proposed fee cuts come amid a broader trend of government intervention to stabilize key transportation industries.

Strategic Significance

The proposed fee reductions represent a targeted regulatory intervention to alleviate operational cost burdens for Vietnamese airlines, which are grappling with sustained high fuel prices. By directly lowering fixed service charges, the policy aims to improve near-term cash flow and profitability margins for carriers like HVN and VJC, potentially enhancing their ability to maintain domestic connectivity and competitive pricing. This aligns with a longer-term strategic reliance on state support mechanisms to buffer against external shocks in the capital-intensive aviation industry.

What to Watch

• Official approval and implementation timeline for the proposed fee reductions by relevant authorities.
• Q2 2026 earnings releases from HVN and VJC to quantify the impact of tax exemptions and potential fee cuts.
• Monthly fuel price trends and their correlation with airline operational cost disclosures.
• Updates on other support policies, such as extensions of fuel surcharge permissions beyond 2026.
• Traffic and capacity data for domestic flights to assess demand resilience amid cost pressures.