According to the Civil Aviation Authority of Vietnam (CAAV), conflict in the Middle East has caused short-term disruptions in global energy supply and demand, pushing up Jet A-1 fuel prices.

In March 2026, prices in Singapore ranged between US$190 and US$200 per barrel, peaking at US$234.34 per barrel, while premiums exceeded US$30 per barrel, at times reaching US$39.6 per barrel, significantly increasing fuel costs.

Domestic fuel supply is expected to meet demand until mid-April 2026, after which airlines may have to import at spot prices, increasing cost risks.

In response, airlines are restructuring route networks, optimising fleets and adjusting capacity to maintain cash flow rather than expand output. Vietnam Airlines will suspend several routes from April 1, including Cat Bi-Buon Ma Thuot, Cat Bi-Cam Ranh, Cat Bi-Phu Quoc, Cat Bi-Can Tho, Ho Chi Minh City-Van Don, Ho Chi Minh City-Rach Gia and Ho Chi Minh City-Dien Bien.

In the second quarter of 2026, depending on fuel price movements (ranging between US$160 and US$200 per barrel), the carrier plans to cut around 700-1,700 flight pairs per month, equivalent to 10-20% of total output. International routes may be reduced by 4-18%, while domestic routes may see cuts of 12-26%.

Vietjet also plans to cut total output by around 18% in April 2026, including a 22% reduction in domestic operations and 11% on international routes. Several routes will be adjusted, including Hanoi-Cam Ranh, Hanoi-Buon Ma Thuot, Ho Chi Minh City-Cat Bi, Ho Chi Minh City-Tho Xuan, Da Nang-Singapore and Ho Chi Minh City-Bangkok.

Sun PhuQuoc Airways is maintaining around 60 flights per day and has secured fuel supply through April, but has left open the possibility of adjustments if market conditions change. Bamboo Airways plans to reduce operations to 15-17 flights per day from April 2026, down more than 50% from current levels, focusing on trunk routes and flights to and from Quy Nhon.

Vietravel Airlines, with a small fleet, will maintain 12-14 flights per day in April and may increase to 28-30 flights later in the month after adding aircraft to serve the April 30-May 1 holiday peak and the summer season. Pacific Airlines plans to cut capacity by 8-30% in the second quarter, mainly on low-demand days and off-peak hours.

The CAAV said it will continue to closely monitor fuel market developments and airline operations to ensure supply-demand balance and protect passenger interests.

Fuel currently accounts for 35-40% of airlines’ operating costs. If prices remain around US$200 per barrel, operating costs could increase by about 40% compared to the period before the Middle East conflict.

In this context, the authority has proposed applying a fuel surcharge from April 1 to June 30, 2026, under which airlines and passengers would share about 50% of the additional costs arising from fuel price increases.

Vietnamese airlines weigh fuel surcharges on international routes

VOV.VN - Vietnamese airlines are considering fuel surcharges on international routes from early April 2026 as jet fuel prices rise sharply amid the Middle East conflict.