Declining oil prices over the past month have yet to be reflected in lower ticket prices among airlines operating in Vietnam.

Air ticket prices unchanged by fuel cost cuts 

A representative from Vietnam Airlines said that declining fuel costs, which account for some 38 percent of the airline's overall costs, will boost the operator's efficiency and may allow the airline to lower its fuel surcharge.

But there were no plans to reduce the surcharge at this stage as it was unclear whether lower oil prices were only a temporary market phenomenon.

“Vietnam Airlines" fuel surcharges are based on the average level of the local aviation market. However, we do not collect this surcharge on domestic routes,” he noted.

A spokesman for Jestar Pacific said lower fuel costs would be good for airlines, but would not necessarily mean lower ticket prices unless cheaper fuel became a long-term feature.

Airlines are already offering discount tickets, which did not allow much room for any overall lower of ticket prices. Other costs, such as maintenance and landing fees, were continuing to rise.

Current falls in fuel prices would take time to work through the system as many airlines hedged prices at high levels when fuel was rising.

The price of Brent crude has dropped 40 percent since June and the Organisation of Petroleum Exporting Countries (OPEC) has decided not to restrict supply in order to force oil higher. The International Air Transport Association (IATA) expects the decline in oil prices to translate into savings by airlines of USD12 billion in fuel costs.