by CHEN Yixuan

Airlines are cutting flights on Southeast Asia routes as jet fuel prices surge toward $200 a barrel, squeezing margins and testing demand ahead of China's May Day holiday, one of the world's busiest outbound travel periods.

Capacity cuts have been concentrated on routes linking China with Thailand, Vietnam and Malaysia, highlighting pressure on one of Asia's key leisure corridors.

Low-cost carriers such as AirAsia and VietJet Air have been hit first due to thinner margins, trimming frequencies and dropping weaker routes. AirAsia has raised fuel surcharges by 20%, while VietJet has reduced capacity on some international routes by more than 30%, according to AeroRoutes.

Full-service carriers are also starting to adjust. Vietnam Airlines plans to suspend several routes and may cut capacity by 10%–20% if fuel prices remain elevated.

Jet fuel prices remain volatile. As of April 10, global averages were about $198 per barrel, up 13% from a month earlier and more than 150% year on year, with Asia the most expensive region at around $217 per barrel.

In China, the impact has been milder, though cancellation rates are rising. Data show a 14.6% cancellation rate for the coming week as of April 13, unusually high for the market.

Industry participants say Chinese carriers are more likely to absorb costs through fare increases and network adjustments rather than large-scale cuts.

With fuel prices elevated and peak travel demand approaching, further capacity reductions are likely across the region.