Vietnam airlines plan domestic cuts, raise fuel surcharges as costs climb

CAAV said aviation fuel supply faces a risk of shortage, prompting airlines to review schedules and prioritize key routes.

National carrier Vietnam Airlines plans to suspend several low-demand domestic routes from April 1, including Hai Phong–Buon Ma Thuot, Hai Phong–Cam Ranh, Hai Phong–Phu Quoc, Hai Phong–Can Tho, Ho Chi Minh City–Van Don, Ho Chi Minh City–Rach Gia, and Ho Chi Minh City–Dien Bien, totaling 23 flights per week.

The airline said the move is intended to shift resources to trunk routes and essential corridors serving travel, trade, and tourism.

Other domestic carriers are also preparing contingency plans, including possible fuel surcharges on international flights from early April.

A Bamboo Airways representative said the airline would focus resources over the next two months on major routes linking Hanoi, Ho Chi Minh City, and Da Nang, as well as high-demand tourist destinations such as Quy Nhon and Cam Ranh, while maintaining charter services to China and the Philippines.

The carrier said it would try to maintain peak-period services but frequency could be lower than a year earlier if fuel prices continue to rise, adding that any fare adjustments would remain within the government’s price framework.

Vietjet and Vietravel Airlines are also reviewing operations, though neither has announced specific cuts.

Airlines with larger networks and higher flight frequency may face greater pressure to reduce services.

Fuel costs drive fare increases, operational shifts

Several carriers have notified agents of fuel surcharge increases or fare adjustments on international routes.

Vietjet has raised fuel surcharges on routes between Vietnam and South Korea, effective for tickets issued and travel from April 1, with fees rising to as much as VND1.57 million (US$60) per segment from VND500,000 ($19) on some routes.

On other South Korea routes, surcharges have increased to about VND1.33 million ($50.5) per segment from VND420,000 ($16), according to airline notices.

Vietravel Airlines has also raised fuel surcharges on Bangkok routes to VND750,000 ($28.5) per ticket from VND450,000 ($17).

Vietnam Airlines has implemented its sixth fuel surcharge adjustment this year on international routes, with most increases effective from March 18 and some markets, including South Korea and Hong Kong, from Wednesday.

CAAV said global energy prices rose between March 20 and March 22, with Jet A-1 fuel in Singapore trading at around $220–230 per barrel.

The conflict involving the U.S., Israel, and Iran in the Middle East since February 28 and the closure of the Strait of Hormuz by Iran have tightened supply and driven price volatility.

A quick survey by the regulator of nearly 40 international and regional airlines found more than 60 percent had raised, were raising or planned to raise fuel surcharges or fares from mid-March.

Airlines are using two main approaches: incorporating fuel costs into base fares, typically increasing prices by five percent to 20 percent depending on route and class, or applying separate fuel surcharges ranging from about VND130,000 ($5) to over VND10 million ($380) per ticket.

In cargo transport, some carriers have also introduced fuel surcharges of around VND17,000 ($0.65) to VND40,000 ($1.5) per kilogram, CAAV said.