Why does Vietnam Airlines have to spend an additional 100 billion/year on flights to Europe?

Starting from January 2025, the EU’s ReFuelEU policy requires flights from over 350 airports in the EU to use at least 2% sustainable aviation fuel (SAF) alongside traditional fuel. Vietnam Airlines, which operates numerous routes to Europe, will be directly affected. Le Hong Ha, General Director of Vietnam Airlines, stated that the airline’s fuel costs are projected to rise by nearly 6%, amounting to 5-6 million USD (over 100 billion VND) because SAF is 2-3 times more expensive than traditional fuel and its supply is limited. The airline plans to incorporate additional costs from SAF into ticket prices, similar to other international airlines. This challenge is seen not only for Vietnam Airlines but for the entire aviation industry, requiring collaboration from various parties to optimize SAF production and distribution.