Starting October 1st, airfares will increase across the board.

Airfares will increase due to passenger service and security fees, while transportation costs remain unchanged.

On September 13th, Vietnam Airlines became the last Vietnamese airline to announce the application of passenger service fees and passenger and baggage security fees according to the new regulations of the Ministry of Transport.

Accordingly, all three airlines will apply new fees to newly issued and changed tickets starting from October 1st. These are fees collected in accordance with regulations that have been in place until now.

Specifically, the aviation security fee for a domestic passenger increased from 9,090 VND to 11,818 VND; and the passenger service fee increased from an average of 47,727 VND to 68,181 VND. On average, the total fee increase will be 23,181 VND per passenger on a domestic flight.

For international flights, the increase varies depending on the airport. For example, the fee at Noi Bai Airport has increased by $6, and at Tan Son Nhat Airport by $5 per passenger. The airport security fee is $2, up from the previous $1.50. Thus, the total fee will increase by $5.50 - $6.50 per passenger for international flights at these two airports.

Airfare prices are adjusted in three phases, the first phase from October 1st to December 31st.

However, in addition to the new fees for passengers, the Ministry of Transport has also imposed fees on airport services for airlines. This has led many travelers to worry about the impact on airfares.

A representative from Vietnam Airlines affirmed that, apart from adjusting the fees, the airline has not increased transportation fares. A representative from Jetstar Pacific stated that this fee increase will not significantly affect the airline's ticket prices.

"The airline is currently selling tickets at 12-13 different price levels, from lowest to highest, for each flight. The direct costs associated with airfare can be calculated by the airline to determine appropriate pricing, such as adjusting the average fare, which includes restructuring the proportion of tickets at each price level from lowest to highest. However, passengers can still find cheaper tickets," an airline representative said.

A representative from Vietjet Air also stated that ticket prices are comprised of various taxes and fees. Therefore, when taxes and fees increase, ticket prices must increase accordingly. "However, depending on the time, the airline may reduce or increase ticket prices to meet the actual needs of the market," the representative said.

Speaking to the press, Lai Xuan Thanh, Chairman of the Board of Directors of Vietnam Airports Corporation (ACV), assessed that the likelihood of an increase in airfares after this adjustment is very low.

"It is estimated that airlines will have to increase their spending by more than 161.53 billion VND per year, equivalent to 4,531 VND per passenger. The total additional cost passengers will have to pay for a plane ticket is approximately 30,300 VND," Mr. Thanh said.

Airlines also advise that all transportation fares, taxes, fees, and charges are clearly detailed on the ticket. Passengers should carefully check this information when issuing tickets to ensure they are not charged incorrectly or for charges outside of regulations.

According to a decision by the Ministry of Transport, air service fees at airports will increase to offset investment costs in airport systems and improve service quality. The adjusted fees will be applied in three phases: October 1, 2017 - December 31, 2017; January 1, 2018 - March 31, 2018; and from April 1, 2018.

Previously, all three major domestic airlines implemented fare or service fee increases in late March and early April. The increases ranged from 40,000 to 500,000 VND depending on the route and class of seat.

According to VNE