HANOI, MARCH 24, 2026 — The escalating conflict in the Middle East has claimed a new casualty: Southeast Asian aviation. Vietnam’s national carrier, Vietnam Airlines, has announced the suspension of nearly two dozen domestic flights per week starting April 1, citing a critical shortage of Jet A-1 fuel linked to the effective closure of the Strait of Hormuz.
The Civil Aviation Authority of Vietnam (CAAV) confirmed late Monday that the “limited supply and soaring costs” of aviation fuel have put the nation’s carriers at an operational tipping point.
The Impact: Routes and Frequencies
While international trunk routes and major domestic connections (like Hanoi–Ho Chi Minh City) are currently being prioritized, several regional routes will be halted to conserve dwindling reserves.
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Total Suspensions: 23 flights per week will be cut initially.
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Targeted Routes: Key suspensions include flights from Hai Phong to destinations like Buon Ma Thuot, Cam Ranh, Phu Quoc, and Can Tho, as well as routes connecting Ho Chi Minh City to Van Don, Rach Gia, and Dien Bien.
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Regional Ripple Effect: Beyond the flag carrier, VietJet Air and Bamboo Airways are also reviewing schedules, with Bamboo focusing its remaining fuel on the “golden triangle” of Hanoi, HCMC, and Da Nang.
Why Vietnam? A Supply Chain “Stranglehold”
Vietnam is particularly vulnerable to the current crisis in the Persian Gulf:
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Import Dependency: The country imports approximately 70% of its aviation fuel.
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The Hormuz Factor: While much of Vietnam’s fuel comes from Singapore, Thailand, and China, these regional hubs rely on crude oil passing through the Strait of Hormuz—which has seen a 70–80% collapse in tanker traffic since the war began.
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Price Surge: Jet A-1 prices in the Singapore market have reportedly jumped from $85 per barrel in January to a peak of over $230 per barrel in early March—a staggering 160% increase.
Emergency Measures
To keep the industry from grounding entirely, the Vietnamese government is considering a suite of emergency supports:
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Tax Relief: Proposals include extending the exemption of the environmental protection tax on fuel through May 2026.
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Fee Reductions: A potential 50% cut in take-off, landing, and air traffic control charges.
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Fuel Surcharges: Airlines are expected to introduce significant fuel surcharges on international tickets starting in April to offset a projected 50-60% rise in monthly operating costs.
A Global Warning
The crisis in Vietnam is being echoed across the region. Myanmar’s national carrier and the Philippines’ Cebu Air have issued similar warnings, while analysts at Chatham House suggest that Southeast Asian airports are at “heightened risk” compared to Europe due to their direct reliance on Gulf-sourced energy.
