Vietnamese airlines plan to cancel flights on domestic and international routes from April due to fuel supply constraints caused by Middle East conflict, state media reported citing regulator document.

Flag carrier Vietnam Airlines will suspend seven domestic routes from April 1 and reduce flight volumes by 10%-20% monthly in next quarter if jet fuel prices rise to USD 160 to USD 200 per barrel, state-run Nhan Dan newspaper reported.

Airline could cut up to 18% of international flights and as much as 26% of domestic operations, report stated. Vietnam Airlines shares fell 5.7% during Friday morning trading session.

Low-cost carrier Vietjet Air plans to cut 18% of total flight capacity in April, including 22% reduction in domestic flights and 11 percent decrease in international operations. Vietjet Air shares edged up 0.4%.

Bamboo Airways aims to halve daily flights to around 17 from current 36 operations. Sun PhuQuoc Airways intends to maintain existing schedule for now as it has sufficient fuel stock until end of April, but may reassess position if fuel disruptions persist.

To stabilize domestic market, Vietnam's finance ministry has suspended environmental protection and special consumption taxes on fuels, including jet fuel, until April 15.

Aviation crisis mirrors broader regional impact of Middle East conflict on fuel supplies. Vietnamese carriers join growing list of airlines globally forced to adjust operations due to rising fuel costs and supply uncertainties stemming from regional warfare.

Source: Reuters