Vietnamese airlines are preparing to reduce flights from April as fuel supply constraints linked to the Middle East conflict begin to affect both domestic and international operations. For the travel and tourism sector, the immediate issue is not demand but the prospect of reduced connectivity, tighter schedules and a more limited seat supply across key routes.
According to a report from Vietnam’s regulator cited by state media, Vietnam Airlines will suspend seven domestic routes from April 1 and cut flight volumes by 10 to 20 per cent per month in the next quarter if jet fuel prices rise to between $160 and $200 a barrel. The same report said the flag carrier could reduce international flights by as much as 18 per cent and domestic operations by up to 26 per cent. Vietjet Air is planning to cut 18 per cent of its total flight capacity in April, including a 22 per cent reduction in domestic services and an 11 per cent cut in international operations.
The pressure is spreading across the market, though not evenly. Bamboo Airways aims to halve its daily flights to around 17 from 36, signalling a sharper retrenchment in available capacity. Sun PhuQuoc Airways, by contrast, intends to keep its existing schedule for now because it has sufficient fuel stock until the end of April, though it may reconsider if disruptions persist. That divergence suggests the short-term impact will depend partly on individual carriers’ fuel reserves, even as the wider operating environment deteriorates.
For tourism, the implications are practical rather than abstract. Fewer flights on domestic and international routes can narrow travel options, strain itinerary planning and raise the risk of disruption during a period when carriers are already adjusting schedules. The Vietnamese government has responded by suspending environmental protection and special consumption taxes on fuels, including jet fuel, until April 15 in an effort to stabilise the domestic market. Investor reaction has been mixed, with Vietnam Airlines shares down 5.7 per cent during Friday morning trading while Vietjet Air rose 0.4 per cent. What remains unclear is whether temporary tax relief and existing fuel stocks will be enough to prevent further cuts if supply constraints and elevated fuel prices continue into the next quarter.
