Vietnam's Airlines Start Cutting Flights as Jet Fuel Crisis Hits

[Vietnam's Airlines Start Cutting Flights as Jet Fuel Crisis Hits]

Vietnam's aviation industry is heading into April with a fuel tank that's almost empty.

Starting April 1, Vietnam Airlines, VietJet, and Vietravel Airlines will suspend routes and slash frequencies across both domestic and international networks. The trigger: a jet fuel shortage caused by the escalating Middle East conflict, which has effectively shut down the Strait of Hormuz and choked off more than 20% of global oil shipments.

China banned all refined fuel exports on March 11. Thailand followed on March 6, cutting off supplies to every country except Myanmar and Laos. For Vietnam, which imports about 70% of its aviation fuel and sources 60% of that from China and Thailand, the timing couldn't be worse.

▍ Fuel supplies guaranteed only through March

Vietnam's two main jet fuel importers, Skypec and Petrolimex Aviation, told the civil aviation authority that existing stocks will last only through the end of March. April contracts are still being negotiated, but suppliers keep delaying deliveries. Some may invoke force majeure to walk away from deals entirely.

Jet fuel prices have more than doubled since the start of the year and remain volatile. Airlines say the surge is pushing monthly operating costs up by 30% to 60%.

▍ Vietnam Airlines suspends seven domestic routes

On March 24, Vietnam Airlines confirmed it will cut 23 flights per week starting April 1. Seven domestic routes are being suspended: Hai Phong to Buon Ma Thuot, Cam Ranh, Phu Quoc, and Can Tho, plus Ho Chi Minh City to Van Don, Rach Gia, and Dien Bien.

These routes share a common problem: low passenger loads that can't cover operating costs when fuel prices are this high.

▍ VietJet suspends two Japan routes, triples Korea surcharges

VietJet is adjusting both domestic and international operations.

Two Japan routes are being suspended: Narita-Hanoi (VJ934/935) from April 7 through the end of the month, and Kansai-Hanoi (VJ930/931) from April 8 onward. VietJet's other Japan services to Nagoya, Fukuoka, and Hiroshima are still operating, but frequencies from May through October will be reduced.

VietJet's Vietnam-South Korea routes are still flying, but fuel surcharges have more than tripled. Other international routes are also seeing hikes.

Vietravel Airlines is also suspending some routes from April 1.

Bamboo Airways says it will focus resources on trunk routes between Hanoi, Ho Chi Minh City, and Da Nang, along with high-demand tourism destinations like Cam Ranh. Even those routes may see fewer flights than the same period last year.

▍ Over a thousand flights expected to be cut in April and May

Across all carriers, Vietnam's aviation sector is looking at roughly a thousand fewer flights during April and May. The civil aviation authority has asked airports to prepare extra parking space for grounded aircraft.

A quick survey the authority ran on March 20, covering nearly 40 international and regional airlines, found that over 60% have already raised or plan to raise fuel surcharges.

On the domestic side, regulators have proposed allowing airlines to add fuel surcharges to domestic tickets for the first time. If approved, domestic airfares in Vietnam will go up.

▍ Government scrambles for alternatives

Hanoi is trying to diversify its fuel sources. Foreign Minister Le Hoai Trung met Chinese counterpart Wang Yi on March 15 to discuss energy supply. Vietnam has also reached out to Japan and South Korea for help securing additional oil imports.

Replacing what China and Thailand used to supply won't be easy or fast.

▍ What this means for travelers

If you're planning a trip to Vietnam in the coming weeks, here's what to watch.

Domestic flights are the first casualty. Popular tourist routes like Ho Chi Minh City to Phu Quoc or Nha Trang haven't been suspended yet, but frequencies may drop and prices will rise with new fuel surcharges. Routes between smaller cities carry the highest risk of cancellation. Check your flight status early.

For international routes, Japan services are hit hardest. South Korea routes will get more expensive. No Taiwan-Vietnam routes have been suspended yet, but Taiwanese carriers are reportedly evaluating cuts on lower-demand routes.

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