Airlines add fuel surcharge for domestic flights

From August 15th domestic airlines including Vietnam Airlines, Jetstar Pacific and Vasco will start adding a fuel surcharge to flights to help beat increased costs. Charges will range from $3 to $11 depending on the distance travelled, and will help offset some of the losses made by the airlines this year.

It was reported earlier this year that Vietnam Airlines made a loss of $5 million in the first half of the year despite a 28% increase in revenue, due to the rapid rise in fuel costs, and the government recently moved to abolish import tax on airline fuel in order to help the struggling industry.

In other recent news Jetstar Pacific have cut flights to Nha Trang from September 5th. This has also been blamed on the high cost of fuel. Instead, Jetstar Pacific plan to start offering flights between Bangkok, Siem Reap and Singapore and Ho Chi Minh City from the end of October / early November this year. Apparently their operational plans had been based on an oil price of $70 a barrel yet recent months have seen the price rise far higher, and some analysts believe there is some way to go yet.