Local airlines are seeking government approval for the second airfare hike this year, saying operation costs have increased, news website VnExpress reported Friday.
All local airlines want to raise the price cap on domestic airfares in November, the report said, citing the Civil Aviation Administration of Vietnam. The ceiling is now set at VND2.7 million for a one-way ticket.
VnExpress cited industry insiders as saying jet fuel prices have surged sharply. Vietnam Airlines, for instance, reported an overspending of VND1.53 trillion on fuel bills in the first six months. Other carriers including Air Mekong and Jetstar Pacific faced the same situation.
"An increase in the price cap doesn't mean airfares will be raised immediately. We will only use the cap as a base for our rates," a Vietnam Airlines source said.
According to the Dau Tu (Investment) paper, the national carrier could raise its prices by 15 percent.
Vietnam allowed domestic carriers to increase their airfares in April. The maximum rate for the longest north-south flights has been set at VND2.7 million since, while Hanoi-Ho Chi Minh City airfares range up to VND2.5 million.