Vietnam's aviation industry hit as Middle East conflict disrupts flight routes

Flights between Vietnam and Europe are becoming more expensive after airlines were forced to reroute to avoid airspace over Iran and Iraq following escalating tensions in the Middle East.

According to a preliminary assessment by the Civil Aviation Authority of Vietnam (CAAV), the conflict is creating mounting pressure on aviation, trade and tourism as the situation remains volatile with no clear end in sight.

Vietnam’s flag carrier Vietnam Airlines (HoSE: HVN) has been the hardest hit among domestic carriers. Although Vietnamese carriers do not operate direct flights to the Middle East, Vietnam Airlines’s routes from Vietnam to Europe normally pass through airspace near the region.

To avoid the conflict zone, HVN has adjusted its routes to bypass the airspace of Iran, Iraq, and surrounding areas. Flights are now taking either a northern corridor via Central Asia or China, or a southern corridor through South Asia and the Arabian Peninsula, including Saudi Arabia.

The detours add about 10-15 minutes to each flight and increase operating costs by roughly $2,000 per trip, mainly due to higher fuel consumption and additional navigation fees. If tensions continue to escalate, Vietnam Airlines could also face higher war-risk insurance premiums, which may rise 10-15% for aircraft operating long-haul routes near conflict zones, CAAV noted.

Middle Eastern carriers serving Vietnam have also been affected. Qatar Airways, Emirates, and Etihad Airways operate six routes connecting Abu Dhabi, Dubai and Doha with Hanoi, Ho Chi Minh City, and Danang, with a combined frequency of about 12 flights per day.

In January 2026, the three airlines transported around 141,000 passengers and 11,000 tons of cargo to and from Vietnam. Since February 28, however, many flights have been canceled, affecting tens of thousands of passengers and reducing traffic for aviation service providers.

While Turkish Airlines continues operating normally between Vietnam and Europe, Emirates has partially resumed flights since March 5 with reduced frequency, while Qatar Airways and Etihad Airways remain temporarily suspended.

State-run air navigation provider Vietnam Air Traffic Management Corporation (VATM) estimates revenue losses of nearly $1 million per month due to the conflict fallout, while airport operator Airports Corporation of Vietnam (ACV) expects monthly revenue to fall by about $10.9 million due to lower passenger service charges and airport service fees.

The tourism sector has also been hit as many tours from Vietnam to the Middle East have been canceled. Meanwhile, cargo transport between Vietnam and Europe has faced delays and higher costs, affecting key export products such as electronics components and garments.

The Middle East serves as a transit hub for roughly 25-30% of electronic components and high-tech goods shipped from Europe to Vietnam. Flight disruptions could therefore lead to localized shortages in major northern manufacturing hubs such as Bac Ninh and Thai Nguyen.

CAAV said it will continue monitoring developments and support airlines in adjusting operations. It is also considering measures to mitigate the impact, including reducing aircraft parking fees and coordinating with airlines on potential fuel surcharges in case of oil price rise due to a prolonged conflict.