Average domestic airfares have increased by 15–20% as the Middle East tensions have disrupted fuel supply chains, forcing airlines to stop offering low-cost options.
As domestic Jet A1 fuel supply meets only about 20% of demand, airlines need to rely on imports from countries restricting exports such as China, Thailand, and South Korea, according to a recent report by the Airports Corporation of Vietnam.
An aircraft seen at Dien Bien Airport in December 2023. Photo by Read/Ngoc Thanh |
So carriers have been consolidating flights and suspending overnight operations to increase the number of passengers per flight and optimize load factors, the listed public company, which manages 21 airports around the country, said.
“This has significantly reduced the number of takeoffs and landings at ACV-operated airports.”
As cheap tickets are no longer available, passenger demand has declined, particularly in the leisure travel segment, the report added.
Jet fuel prices in the Asia-Pacific region exceeded $207 per barrel in mid-April, 2.4 times the 2025 average, according to data from the International Air Transport Association.
Airlines are also facing challenges due to volatile exchange and interest rates, which affect their operational efficiency, the ACV said.
Last year, 120.3 million passengers passed through ACV airports, up 9.4%, including a 14% increase in international passengers to 47.1 million.
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