FLIGHT PRICE IN VIETNAM

Are Airfares in Vietnam High or Low Compared to Other Countries in the Region?

The Civil Aviation Authority of Vietnam stated that the fare per kilometer on domestic routes of Vietnam Airlines is currently comparable to airlines in the Southeast Asian region and significantly lower than those of European and North American airlines.

Since the beginning of 2024, the average economy class fares on certain routes (including taxes and fees) of Vietnamese airlines have increased compared to 2023.

According to the state aviation authority, since the beginning of 2024, the average economy class fares on certain routes (including taxes and fees) of Vietnamese airlines have increased compared to the same period in 2023.

For the Hanoi – Ho Chi Minh City route, the average fare of Vietnam Airlines is about 2.64 million VND per trip (up 14% compared to the same period in 2023), Vietjet Air about 1.74 million VND (up 25%), Bamboo Airways about 2 million VND (up 11%), and Vietravel Airlines about 1.5 million VND (up 15%).

Compared to the maximum price regulated (3.4 million VND, excluding taxes and fees), the average fares of these airlines range from 44.1% (Vietravel Airlines) to 77.6% (Vietnam Airlines) of the maximum fare.

For the Hanoi – Ho Chi Minh City route to/from Da Nang, the average fare of Vietnam Airlines is about 1.8 million VND per route (up 17%-26%), Vietjet is about 1.3-1.5 million VND per route (up 32%-38%), Bamboo Airways is about 1.3-1.6 million VND per route (up 13%-29%), and Vietravel Airlines is about 1.1-1.4 million VND per route (up 14%-20%).

Compared to the maximum regulated price (2.89 million VND, excluding taxes and fees), the average fares of Vietnamese airlines range from 38.1% (Vietravel Airlines) to 62.3% (Vietnam Airlines) of the maximum fare.

For the Hanoi – Phu Quoc route, the average fare of Vietnam Airlines is about 2.7 million VND (up 13.8%), and Vietjet is approximately 1.8 million VND (up 49.6%). Compared to the maximum regulated price (4 million VND, excluding taxes and fees), the average fares of Vietnamese airlines range from 45% (Vietjet) to 68% (Vietnam Airlines).

For the Hanoi – Nha Trang route, the average fare of Vietnam Airlines is about 2 million VND (up 7%), Vietjet is about 1.55 million VND (up 39%), and Bamboo Airways is about 1.45 million VND (up 3%).

Compared to the maximum regulated price (3.4 million VND, excluding taxes and fees), the average fares of Vietnamese airlines range from 42.6% (Bamboo Airways) to 60.8% (Vietnam Airlines), with Vietjet’s fare at 45.7%.

The Civil Aviation Authority of Vietnam noted that during the holiday period of April 30th – May 1st, air travel demand increased significantly. While passengers who booked early could get lower fares, those who booked late or close to the flight date had to pay higher prices.

In some cases, when flights filled up quickly, buying tickets became more difficult, leading to higher prices (for example, as of April 19, 2024, the booking rate for flights on April 27th had exceeded 90% on routes from Hanoi to Hue, Quy Nhon, Quang Binh, Nha Trang, Tuy Hoa, Dien Bien; and from Ho Chi Minh City to Da Lat, Tuy Hoa, Phu Quoc, Dien Bien; and the booking rate for flights on May 1st exceeded 90% on routes from Hue, Phu Quoc, Dien Bien, Dong Hoi, Nha Trang to Hanoi, and from Pleiku, Phu Quoc, Tuy Hoa, Quy Nhon, Hanoi to Ho Chi Minh City).

Comparison of Fares of Vietnamese Airlines with Some International Airlines (Flight Date May 8, 2024, as of April 1, 2024)

Prolonged Aircraft Shortages

Route	Flight brand	Normal (USD)	Highest (USD)	Km	Price/km
HAN-SGN(Hanoi-Ho chi minh city)	Vietnam airline	66	113	1161	0.08-0.12
HAN-DAD(Hanoi-Da Nang city)	Vietnam airline	47	72	628	0.12-0.16
SGN-DAN(Ho chi Minh–Da Nangcity)	Vietnam airline	39	70	607	0.11-0.16
BKK-HKT(Bang koc –Phuket)	Thai airway-TG	63	192	683	0.10-0.29
JKT-DPS (Jakata – Delpasa)	Garuda-GA	90		970	0.12
SHA-CAN(Shanghai – Quangzhou)	China Southern	312.6	343.6	1211	0.27-0.30
TYO-FUK(Tokyo-fukouka)	All Nippon-NH	108	358	913	0.13-0.30
PAR-BOD(Paris – Bordeaux)	Airfance-AF	140	437	514	0.35-0.93
LAX-SFO(LosAngeles-Sanfrancisco)	Delta-DL	87	115	546	0.20-0.25

According to data published on the websites of international airlines, airfares on some routes within the Southeast Asian region are comparable to those of Vietnam Airlines (a standard service airline). Specifically, the fare per kilometer on domestic routes of Vietnam Airlines is currently similar to those of airlines in Southeast Asia and significantly lower than those of European and North American airlines.

The leadership of the Civil Aviation Authority of Vietnam stated that Vietnamese airlines currently set products, services, and domestic airfares within the price framework regulated by Circular No. 17/2019/TT-BGTVT dated May 3, 2019, issued by the Minister of Transport, which regulates the price framework for passenger transport services on domestic routes, as amended and supplemented by Circular No. 34/2023/TT-BGTVT dated November 30, 2023, and other relevant legal regulations, ensuring they meet passenger needs and market conditions at different times.

In reality, air transport activities, especially domestic air transport, are significantly affected by seasonal factors. The increase in airfares on certain routes during peak periods, such as holidays, Tet (Lunar New Year), or summer travel seasons, aligns with market supply and demand as airlines must cover operating costs for positioning flights or flights with low seat occupancy in the opposite direction.

Moreover, in the current period, the operations of airlines are facing four major challenges: rising fuel prices, foreign exchange rate differences, the recall of engines by Pratt & Whitney impacting the reduction of aircraft fleets worldwide, and rising aircraft lease prices.

Specifically, the reduction in the number of operational aircraft has impacted supply capacity, which in turn affects the supply-demand balance during peak periods, leading to market adjustments on airfares.

Due to the engine recall affecting some A321NEO aircraft operated by Vietnam Airlines and VietJet Air, around 40 aircraft will be grounded in 2024 and 2025 (the grounding began in January 2024). Additionally, due to the global recall, the time required for engine repairs has been extended. In 2019, it took 75 days; currently (2024), Pratt & Whitney has announced a repair time of 140-160 days, with special cases taking up to 365 days.

Furthermore, airlines’ aircraft delivery plans in 2024 are affected. Vietjet Air will not receive any additional aircraft; Vietnam Airlines will only receive two B787 aircraft in June and July 2024; and other airlines have announced they cannot find aircraft to lease as planned.

Pacific Airlines and Bamboo Airways are restructuring their fleets to optimize management, reduce costs, and increase business efficiency. Currently, Pacific Airlines operates no aircraft (down 10 from 2023), and Bamboo Airways operates only five aircraft (down 25 from 2023).

In response to passengers’ concerns about rising airfares, the Civil Aviation Authority of Vietnam advises passengers to plan their travel early, purchase tickets through official channels, and monitor airlines’ flight schedules to arrange, adjust, and select reasonable fares accordingly.

If any issues arise that affect passengers’ legitimate rights during air transport services, passengers should report them to the Civil Aviation Authority of Vietnam, regional airport authorities, or relevant state agencies for timely handling and resolution.

Additionally, passengers traveling during peak periods may also consider and combine different transportation methods to reach their destinations for the best travel experience.

Currently, the fleet of Vietnamese airlines consists of 213 aircraft, down 18 from 2023; of which the actual number of operational aircraft ranges from 165 to 170, down about 40-50 aircraft compared to the average in 2023. It is expected that during the peak summer period of 2024 (from June to the end of August 2024), Vietnamese airlines will operate 178 aircraft (including planned wet-lease aircraft), a decrease of 38 aircraft compared to the summer of 2023.”