Vietnam Airlines Fuel Surcharge Returns, Routes Cut April 2026

The Vietnam airlines fuel surcharge 2026 proposal marks a significant policy reversal. In 2023, Vietnam's government suspended domestic fuel surcharges to stimulate air travel during the post-COVID recovery period. The strategy worked — domestic passenger numbers surged to over 45 million in 2025, a record high that exceeded pre-pandemic levels. But the geopolitical landscape has shifted dramatically. The Iran-US conflict that erupted in late February 2026 has disrupted shipping through the Strait of Hormuz, a narrow waterway between Iran and Oman through which approximately 20% of the world's oil and gas supply transits daily. With tanker traffic facing delays, rerouting costs, and war-risk insurance premiums, jet fuel prices have spiked sharply. For Vietnamese carriers operating on razor-thin margins — particularly budget airlines like VietJet and Bamboo Airways — absorbing these costs is no longer sustainable. The CAAV proposal would allow airlines to pass a portion of the fuel cost increase directly to passengers, with the surcharge amount varying by route distance.

Even before the surcharge debate is resolved, airlines are already acting. Vietnam Airlines, VietJet Air, and Bamboo Airways have all announced plans to suspend or reduce flight frequencies on several domestic routes effective April 1, 2026. The cuts target routes with low load factors — typically secondary city pairs where demand is insufficient to cover the rising fuel costs. Routes connecting regional airports like Vinh, Thanh Hoa, Dong Hoi, and Con Dao are most vulnerable. Airlines are consolidating flights onto high-demand trunk routes (Hanoi-HCMC, Hanoi-Da Nang, HCMC-Da Nang) where they can fill larger aircraft more efficiently. For passengers on affected routes, the options narrow to fewer flight times, longer layovers through hub airports, or switching to rail and road transport. Vietnam Railways has already reported a 15% uptick in advance bookings for April on the Hanoi-HCMC Reunification Express.

The root cause of Vietnam's aviation cost crisis lies thousands of kilometers away, in a narrow waterway between Iran and Oman. The Strait of Hormuz handles roughly 21 million barrels of oil per day — about 20% of global petroleum trade. Since the Iran-US conflict intensified in late February 2026, tanker traffic through the strait has been disrupted by naval confrontations, mine-clearing operations, and war-risk insurance surcharges that have tripled in a month. Brent crude has climbed from $78 to nearly $83 per barrel over March — a 6% increase. But jet fuel prices have risen even faster, up approximately 12-15% because aviation kerosene (Jet A-1) is a refined product with additional processing and logistics costs layered on top of crude pricing. For Vietnamese airlines, which import virtually all their jet fuel, this translates to an estimated additional cost of 800-1,200 billion VNĐ per quarter across the industry. The fuel surcharge proposal is the CAAV's attempt to distribute this burden between airlines and passengers rather than forcing carriers to absorb it entirely.

The fuel surcharge arrives at an unfortunate moment for Vietnamese consumers. Bank deposit interest rates have climbed to 9% — their highest level since early 2024 — as the State Bank of Vietnam tightens monetary policy to defend the dong amid global capital outflows triggered by the Iran conflict. Higher interest rates mean more expensive mortgages, car loans, and credit card debt. Combined with rising airfares, Vietnamese households face a squeeze on discretionary spending from both sides. According to the Vietnam Aviation Business Association, domestic air travel demand is price-elastic: a 10% increase in average ticket prices historically leads to a 6-8% decline in passenger numbers. The timing is particularly poor for Vietnam's tourism sector, which was counting on strong domestic travel through the summer peak season (April-August). Hotel operators in Da Nang, Phu Quoc, and Nha Trang are already reporting slower booking pace for April compared to the same period last year.

The situation remains fluid — the CAAV proposal has not yet been approved, and the surcharge timeline is unclear. But the route cuts are confirmed for April 1. Here is what travelers can act on now: 1. Book secondary-city flights before April 1. Routes to Vinh, Dong Hoi, Thanh Hoa, Con Dao, and Quy Nhon are being reduced or suspended. Current prices and availability will not last. 2. Consider rail alternatives for routes under 800km. The Reunification Express (Hanoi-HCMC) and regional trains are not affected by fuel surcharges. A sleeper berth Hanoi-Da Nang costs roughly 600,000-800,000 VNĐ — potentially cheaper than a surcharged flight. 3. Monitor airline announcements weekly. VietJet and Vietnam Airlines update their route schedules on their websites. Changes may come with short notice as fuel prices fluctuate. 4. Factor in the full cost. A "cheap" 800,000 VNĐ flight could become 950,000-1,000,000 VNĐ after surcharge plus checked baggage — narrowing the gap with full-service carriers. 5. Travel insurance. With routes being suspended, the risk of last-minute cancellations or rescheduling is higher. Basic travel insurance covering flight disruption costs 50,000-100,000 VNĐ and may save you from costly rebooking.