HCMC – The Civil Aviation Authority of Vietnam (CAAV) has convened a meeting with aviation sector stakeholders to discuss response measures as jet fuel prices have tripled due to the impact of the military conflict in the Middle East.
According to the CAAV’s official website, the price of Jet A1 fuel has risen threefold compared to the period before the conflict, which could push airlines’ operating costs up by around 60% to 70%.
The conflict has also disrupted air routes linking Europe and Asia through the Gulf region. Several countries have closed their airspace, forcing airlines to adjust or cancel flight schedules, lengthen flight times and incur additional operating costs.
The situation has affected passenger travel and disrupted the global transportation of cargo, materials and equipment by air.
Domestic fuel suppliers have also had difficulty ensuring sufficient supply for aviation transport operations in Vietnam. Higher diesel prices have also affected airport operations.
To respond to the situation and avoid disruptions to aviation transport, the CAAV and related agencies are studying solutions to stabilize the market and limit sharp airfare hikes, particularly during the April 30–May 1 holidays and the peak summer travel season in 2026.
Proposed measures include support related to fuel import duties, environmental protection tax, value-added tax, adjustments to aviation prices and fees, and credit policies to support airline operations.
Fuel importers at the meeting said they had sought alternative supply sources in the near term, but ensuring sufficient fuel supply remains challenging due to the global impact of the conflict.
A representative of Vietnam Airlines said fuel supply in April is expected to be difficult. The carrier plans to use fuel reserves from March and implement fuel-saving measures to meet part of its operational demand.
According to Vietnam Airlines, if fuel prices reach around US$200 per barrel, airlines’ operating costs could double.
As some Middle Eastern carriers have suspended operations, Vietnam Airlines has adjusted several routes to Europe and added around 30 flights to clear passenger backlogs between Vietnam and overseas markets.
To address immediate difficulties, Vietnam Airlines has proposed that authorities consider exempting the environmental protection tax on jet fuel.
The airline also suggested that the CAAV work with international aviation authorities to apply flexible mechanisms similar to those used during the Covid-19 period, alongside slot allocation adjustments at Vietnamese airports.
The CAAV has requested airlines to communicate proactively with passengers, comply with contractual commitments, and review and adjust their operating plans. Airlines are also required to fulfill payment obligations to fuel suppliers.
Domestic fuel suppliers have been asked to maintain production and business plans to ensure adequate fuel supply for aviation operations.
Airport operators have been instructed to study coordination and operational arrangements to reduce costs and optimize conditions for airlines.
