Vietnamese airlines to cut flights due to fuel supply constraints

HANOI: Vietnamese airlines plan to cancel flights on domestic and international routes from next month due to fuel supply constraints caused by the Middle East conflict, state media reported citing a report from the regulator.

• Flag carrier Vietnam Airlines HVN.HM will suspend seven domestic routes from Apr 1 and reduce flight volumes by 10 per cent to 20 per cent per month in the next quarter if jet fuel prices rise to US$160-US$200 per barrel, state-run Nhan Dan newspaper reported.
• The airline could cut up to 18 per cent of its international flights and as much as 26 per cent of its domestic operations, the paper said citing the report.
• Low-cost carrier Vietjet Air VJC.HM plans to cut 18 per cent of its total flight capacity in April, which includes reducing domestic flights by 22 per cent and international operations by 11 per cent, according to the document.
• Bamboo Airways aims to halve its daily flights to around 17 from the current 36.
• Sun PhuQuoc Airways intends to maintain its existing schedule for now as it has sufficient fuel stock until the end of April, but may reassess its position if fuel disruptions persist, the report added.
• To stabilise the domestic market, Vietnam's finance ministry has suspended environmental protection and special consumption taxes on fuels, including jet fuel, until Apr 15.
• Shares of Vietnam Airlines HVN.HM fell 5.7 per cent during Friday's morning session, while Vietjet Air VJC.HM shares edged up 0.4 per cent.