Vietnamese carriers to cut flights as fuel crisis hits operations

The Civil Aviation Authority of Vietnam on Thursday said local airlines are still maintaining winter schedules but they will adjust their networks from April to cope with rising Jet A1 costs.

Fuel supplies are only guaranteed until mid-April, forcing those carriers to balance operations with financial viability.

Flag carrier Vietnam Airlines announced it will stop flights from Cat Bi to Buon Ma Thuot, Cam Ranh, Phu Quoc, and Can Tho, as well as Ho Chi Minh City to Van Don, Rach Gia, and Dien Bien from April 1.

Depending on fuel prices, the airline may cancel 700-1,700 round trips per month in the second quarter, equivalent to 10-20 percent of its schedule.

International routes could see cuts of 4-18 percent, while domestic services may drop 12-26 percent.

Low-cost carrier Vietjet plans to reduce overall capacity by 18 percent in April, including a 22-percent cut on domestic routes and 11-percent on international flights.

Vietjet’s adjustments include trimming Hanoi-Cam Ranh to 25 weekly flights, Hanoi-Buon Ma Thuot to 14, Ho Chi Minh City-Cat Bi to 35, and Ho Chi Minh City-Tho Xuan to 21.

International services such as Da Nang-Singapore and Ho Chi Minh City-Bangkok will also be reduced.

Bamboo Airways expects to halve its schedule to 15-17 flights per day, focusing on trunk routes and flights to and from Quy Nhon, a beach destination in south-central Vietnam.

Sun PhuQuoc Airways, a newcomer in Vietnam’s aviation industry, will maintain 60 flights daily through April but it may later adjust.

Vietravel Airlines will continue operating 12-14 flights daily with two aircraft, planning to expand to 28-30 flights if conditions improve.

Pacific Airlines will cut 8-30 percent of its capacity in the second quarter, targeting off-peak times.

The conflict involving the U.S., Israel, and Iran in the Middle East since February 28 and Iran’s closure of the Strait of Hormuz, a critical route for around 20 percent of global oil and liquefied natural gas supply, have disrupted global energy flows, prompting several countries to restrict exports.

Vietnam relies heavily on imported Jet A1 fuel, with 20 percent supplied domestically and the rest from China, Thailand, and Singapore.

Vietnamese suppliers, including Skypec and Petrolimex Aviation, are seeking alternative sources from Japan and Russia but they have yet to secure deals.

Fuel providers have been committed to meeting demand until mid-April, after which airlines may need to purchase spot fuel at significantly higher prices.