In March alone, the average price of Jet A1 fuel climbed above US$190 per barrel, with a peak of US$242.7 recorded on March 30 - nearly three times higher than what Vietnamese carriers had budgeted for 2026.

The figures, shared by Dang Anh Tuan, Deputy CEO of Vietnam Airlines, at a recent industry forum, underscore the scale of the pressure facing the sector.

Flexible pricing, tighter cost control

For Vietnam Airlines, the response has been to continuously monitor fuel costs and adjust ticket pricing across a flexible range.

The airline aims to balance financial sustainability with affordability, seeking to minimise disruption to both passengers and broader economic activity.

Globally, around 60% of airlines have already adjusted operations due to fuel volatility. Average airfares have risen between 5% and 20%, with many carriers introducing fuel surcharges depending on routes and travel periods.

Operational cuts and smarter fleets

At Vietjet Air, the strategy is more operationally focused.

The airline plans to scale back capacity and suspend less efficient routes starting April 2026. At the same time, it is deploying newer aircraft capable of reducing fuel consumption by up to 20%.

Artificial intelligence is also being integrated into flight operations to optimise fuel usage on a per-flight basis, helping to contain costs in real time.

Beyond internal measures, Vietjet has taken a proactive approach to fuel procurement. By closely tracking geopolitical developments, the airline has secured bulk fuel purchases at more favourable prices.

Notably, it has expanded routes to Kazakhstan - a transit hub for Europe - where fuel prices remain subsidised and stable. This allows the airline to refuel at lower costs, partially offsetting global price increases.

Selective cuts from smaller carriers

For smaller players like Vietravel Airlines, the response is more cautious.

The airline plans to reduce or reschedule underperforming flights through late April, while still maintaining capacity for the peak holiday travel period.

Meanwhile, Sun PhuQuoc Airways has opted to absorb part of the increased fuel costs to maintain network attractiveness, while trimming frequencies on less efficient routes.

Demand shifts open new opportunities

Amid the challenges, market signals are offering cautious optimism.

According to Vietnam Airlines, bookings from Europe to Vietnam have risen noticeably over the past two weeks, particularly for travel between June and September. In contrast, demand for flights to other Southeast Asian destinations has declined.

This shift reflects changing travel patterns, with more passengers opting for direct routes to Vietnam rather than transiting through the Middle East.

To capture this momentum, Vietnam Airlines has added 3,000 seats on European routes, positioning itself to benefit from the shift in demand.

Industry leaders see this as a familiar cycle. As witnessed after the Covid-19 pandemic, aviation demand tends to rebound strongly following major disruptions.

Looking ahead, Bamboo Airways is preparing for that rebound by planning fleet expansion, targeting a fleet of 40 aircraft by 2030.

Balancing short-term pressure and long-term growth

The current fuel shock is testing the resilience of Vietnam’s aviation sector, forcing airlines to balance immediate cost pressures with long-term growth ambitions.

From AI-driven efficiency to strategic route planning and opportunistic fuel sourcing, carriers are deploying a wide range of tools to navigate uncertainty.

At the same time, shifting passenger demand suggests that even in turbulent conditions, opportunities remain for those able to adapt quickly and strategically.

Tran Chung