Business

Vietnamese airlines adjust flight networks from April to optimise efficiency

The authority held a working session on March 24 with domestic airlines, aviation fuel suppliers, airport operators, and the Vietnam Air Traffic Management Corporation to discuss coordinated responses to current market challenges.

Vietnamese airlines to adjust flight networks and capacity from April 2026 to cope with rising Jet A-1 fuel prices and maintain operational efficiency. (Photo: VNA)
Vietnamese airlines to adjust flight networks and capacity from April 2026 to cope with rising Jet A-1 fuel prices and maintain operational efficiency. (Photo: VNA)

Hanoi (VNA) – Vietnamese airlines will adjust flight networks and capacity from April 2026 to cope with rising Jet A-1 fuel prices and maintain operational efficiency, according to the Civil Aviation Authority of Vietnam (CAAV).

The authority held a working session on March 24 with domestic airlines, aviation fuel suppliers, airport operators, and the Vietnam Air Traffic Management Corporation to discuss coordinated responses to current market challenges.

The CAAV said escalating tensions in the Middle East, with no signs of easing, have driven aviation fuel prices sharply higher. Average MOPS Jet A-1 prices in March are projected at around 190–200 USD per barrel, while prices had already reached 234.34 USD per barrel as of March 24. Physical premiums have also surged beyond 30 USD per barrel, peaking at 39.6 USD.

Rising refining costs, war-risk insurance premiums, and localised supply shortages caused by reduced refinery output have further pushed up aviation fuel expenses, which are expected to remain elevated in the near term.

Vietnam’s aviation fuel supply remains heavily dependent on imports, posing significant risks amid supply chain disruptions. Currently, Skypec and Petrolimex Aviation serve as the main suppliers, sourcing most fuel from China, Thailand, and Singapore, while only about 20% comes from domestic refineries, namely Dung Quat and Binh Son.

Meanwhile, several countries, including Thailand, China, the Republic of Korea, and Taiwan (China), have reportedly restricted or temporarily suspended fuel exports to prioritise domestic demand. Suppliers are seeking alternative sources from markets such as Japan and Russia, though no concrete agreements have yet been reached.

Fuel providers have committed to ensuring supply for airline operations until mid-April. Beyond that period, Jet A-1 availability remains uncertain, and airlines may be forced to purchase fuel on the spot market at significantly higher prices.

The CAAV affirmed that flight operations through mid-April are expected to remain stable and compliant with aviation regulations, taking into account fleet capacity and infrastructure conditions.

Airlines plan to prioritise operations on key domestic trunk routes linking Hanoi, Da Nang, and Ho Chi Minh City to support essential socio-economic and political tasks. Internationally, carriers aim to maintain operational slots and market presence in major destinations.

However, some airlines have already begun adjusting their networks by reducing frequencies or suspending domestic routes with low booking levels or poor load factors, particularly late-night, off-peak, and thin routes that fail to cover operating costs.

The CAAV has proposed that the Ministry of Construction report to the Government on urgent support measures to mitigate the impact of soaring fuel prices. Suggested solutions include allowing flexible fuel surcharges on domestic economy-class airfares beyond current price caps, adjusted in line with Jet A-1 price movements.

The authority also recommended extending the 0% import tax on aviation fuel, reducing the environmental protection tax from 1,500 VND (0.057 USD) per litre to 1,000 VND per litre, and lowering value-added tax (VAT) on Jet A-1 fuel.

It also urged the Ministry of Industry and Trade, the Ministry of Finance, and Vietnam National Industry–Energy Group (PVN) to direct the Nghi Son Refinery to maximise output and prioritise Jet A-1 production for domestic aviation fuel suppliers./.

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