Domestic Airfares Jump 20% as Jet Fuel Supply Crisis Hits ACV Airports

Overview

Domestic airfares in Vietnam have surged 20% as jet fuel supply meets only about 20% of demand, according to a report from the Airports Corporation of Vietnam (ACV). The state-owned airport operator, which manages 21 airports nationwide, said airlines are consolidating flights and suspending overnight operations to optimize load factors, significantly reducing takeoffs and landings at its facilities. The development pressures ACV’s near-term revenue outlook amid broader sector headwinds.

Key Facts

• Domestic airfares have increased by 20% due to surging jet fuel prices.
• Jet A1 fuel supply meets only about 20% of domestic demand, forcing reliance on imports from China, Thailand, and South Korea.
• Asia-Pacific jet fuel prices exceeded $207 per barrel in mid-April, 2.4 times the 2025 average (IATA data).
• Airlines are consolidating flights and suspending overnight operations to increase passengers per flight.
• Passenger demand has declined, particularly in the leisure travel segment, as cheap tickets are no longer available.
• In 2025, 120.3 million passengers passed through ACV airports, up 9.4% year-on-year, including 47.1 million international passengers (+14%).
• ACV’s stock closed at VND 46 on April 14, 2026, up 0.43% with volume of 222,100 shares.

What Happened

In a recent report, the Airports Corporation of Vietnam (ACV) detailed that domestic Jet A1 fuel supply is meeting only about 20% of demand, compelling airlines to import from countries that are restricting exports, such as China, Thailand, and South Korea. As a result, carriers have been consolidating flights and suspending overnight operations to increase passenger loads and optimize load factors. ACV stated that this has “significantly reduced the number of takeoffs and landings at ACV-operated airports.”

The report also noted that with cheap tickets no longer available, passenger demand has declined, especially in the leisure travel segment. Airlines are additionally facing challenges from volatile exchange and interest rates, which affect their operational efficiency. The data from IATA showed Asia-Pacific jet fuel prices at over $207 per barrel in mid-April, 2.4 times the 2025 average.

Market Context

ACV (HOSE: ACV) shares closed at VND 46 on April 14, 2026, up 0.43% with thin volume of 222,100 shares. The stock has been under pressure as the aviation sector grapples with rising fuel costs and supply constraints. The 20% fare increase and reduced flight operations directly impact ACV’s revenue from landing fees and passenger services, though the company’s long-term growth story remains tied to Vietnam’s expanding air travel demand. The broader market has been cautious on aviation stocks amid global fuel price volatility.

Strategic Significance

For long-term investors, the fuel supply crisis underscores ACV’s vulnerability to exogenous shocks in the aviation value chain. While ACV benefits from monopoly airport operations in Vietnam, its revenue is directly linked to flight volumes and passenger throughput. The current situation highlights the need for ACV to diversify revenue streams, potentially through non-aeronautical services or capacity expansion. The fuel price spike also tests the resilience of Vietnam’s aviation demand; if sustained, it could delay the recovery of international passenger traffic, which had been a key growth driver.

What to Watch

• Monthly passenger throughput data at ACV’s key airports (Tan Son Nhat, Noi Bai) for April and May 2026.
• Jet fuel price trends in the Asia-Pacific region and any government intervention on fuel supply or price caps.
• Airlines’ Q2 2026 earnings reports for commentary on capacity adjustments and cost pass-through.
• ACV’s Q1 2026 financial results, expected in late April, for impact on revenue and profit margins.
• Any regulatory changes regarding fuel import quotas or domestic refinery output.