HANOI: The aviation and tourism sectors are under mounting pressure from surging fuel prices, prompting calls for flexibility, cost-cutting measures, policy support and ways to boost competitiveness to stabilise airfares and sustain growth.
The government has taken swift action to cushion the impact of rising oil prices related to the Middle East conflict, including tax cuts and an advance of eight trillion dong to the fuel price stabilisation fund.
Without these steps, domestic fuel prices could have fluctuated more sharply, according to Thanh Nien newspaper editor-in-chief Nguyen Ngoc Toan.
However, he warned that even if geopolitical tensions in the Middle East ease, global oil prices are likely to remain high due to damage to production facilities, with recovery expected to take months or longer.
The prolonged impact is rippling across aviation and tourism, sectors seen as critical to Vietnam’s double-digit growth ambitions for the next few years, Toan said.
Airlines have reported flight cancellations, route consolidations and reduced flight frequencies due to fuel shortages, while also considering fuel surcharges on international routes and higher domestic fare caps.
Travel firms, meanwhile, are struggling with losses on pre-sold tours and rising input costs.
“Increasing airfares is almost inevitable, but higher prices will affect demand and, in turn, airlines’ business performance,” said Toan.
Domestic carriers added that as fuel now accounts for a significant share of operating costs, there is little room to absorb further increases.
Dao Duc Vu, deputy general director of Sun PhuQuoc Airways, said the fuel price surge represents a major shock for the young airline, with fuel costs making up around 40% of total expenses.
“We are focusing on optimising all operations, from flight schedules to aircraft turnaround times and technical solutions to reduce fuel consumption,” Vu said, adding that fare adjustments are difficult to avoid but will be managed to limit the burden on passengers.
Vietravel Airlines deputy director Le Tien Dung said the firm plans to cut underperforming routes and reduce flight frequencies in early April as fuel costs, which typically account for up to 35% of airlines’ operating expenses, rise.
However, he said the carrier intends to increase flights during the peak holiday travel period from April 30 to May 1 to meet demand.
Describing the current energy shock as faster and less predictable than the Covid-19 pandemic, deputy director of Bamboo Airways Vo Huy Cuong warned of potential fuel shortages that could disrupt operations.
The airline is prioritising domestic routes integrated with tourism and resort ecosystems and short-haul regional markets, while focusing on fuel-efficient aircraft to navigate the crisis.
Despite higher airfares, passenger demand remains strong, Cuong said.
Vietnam Airlines is also feeling the strain. Dang Anh Tuan, deputy general director of the national flag carrier, described the surge in fuel prices as a major post-pandemic shock, with Jet A1 prices tripling compared to the airline’s initial forecasts.
He said for every US$1 increase in oil price above planned fuel costs, the airline incurs an additional cost of 300 billion dong per year.
Tuan added that the airline is implementing a flexible pricing strategy, maintaining fares below the ceiling while balancing operational sustainability and consumer affordability, to meet travel demand and contribute to the country’s economic growth.
Meanwhile, Tran Ngoc Dong Quan from the Ho Chi Minh City Department of Tourism said tourism posted strong growth in 2025 and early 2026 but rising fuel costs since March have affected both aviation and maritime transport, increasing overall travel expenses.
In response, tourism firms are shifting from price competition to product diversification, focusing on short-haul, domestic and urban tourism, as well as cost-efficient travel options.
Some companies are also separating fuel costs from tour prices to improve transparency.
Quan said steps have been taken to promote restructuring of the demand market, product diversification and service quality improvement.
Ho Chi Minh City plans to roll out monthly stimulus programmes offering 10,000 packages of up to 2.5 million dong per international visitor, he added. — Viet Nam News/ANN
