A recent survey reveals that airfare prices from Hanoi to popular tourist destinations such as Da Nang, Nha Trang, Phu Quoc, and Con Dao have increased in August. Prices have risen by approximately VND 500,000 to nearly VND 2 million compared to June.
Specifically, for the Hanoi – Phu Quoc route, Vietnam Airlines’ economy class tickets are priced between VND 2.8 and 3.6 million for a one-way trip until the end of August. Vietravel Airlines and Vietjet Air’s tickets range from VND 1.6 to 2.9 million, an increase of VND 700,000 to VND 1.5 million compared to June.
The Hanoi – Con Dao route (with a connecting flight) remains the most expensive, with economy class tickets ranging from VND 2.4 to 4 million for a one-way trip, an increase of about VND 1 million compared to June. VietJet Air, Vietnam Airlines, and Vietravel Airlines charge VND 3.3 to 3.5 million for a one-way ticket (including taxes and fees), an increase of VND 800,000 to VND 1.5 million from June.
Despite the increase in airfare prices, a representative from an airline company stated that as this is the end of the summer holiday season, the price increase is only applicable to specific routes and still falls within the regulated price ceiling.
Airfare prices rise unexpectedly even after the summer travel peak. (Illustrative image)
However, according to aviation expert, Prof. Dr. Nguyen Thien Tong, the usual market trend is for airfare prices to decrease towards the end of the summer holiday season. Especially during this period, as airlines have leased additional aircraft to increase supply, they should also consider lowering ticket prices to stimulate travel demand and ensure full flights.
“Prices can be lower, but if there are only a few empty seats, the flight will still be profitable,” said Tong.
The expert also pointed out that while people’s travel demand is high, expensive airfare may drive them to opt for alternative means of transportation such as private cars, trains, or buses. Only under unavoidable circumstances will they choose to fly.
According to the Civil Aviation Authority of Vietnam’s forecast, the total air transport market in 2024 is expected to reach approximately 78.3 million passengers and 1.21 million tons of cargo, representing a 7.7% increase in passengers and a 13.4% increase in cargo compared to 2023. These figures are equivalent to the pre-pandemic levels of 2019.
However, as of the end of July, the total number of aircraft operated by Vietnamese airlines with an Air Operator Certificate (AOC) is 195, a decrease of 36 aircraft. The average number of aircraft in operation is 167, a decrease of 51 aircraft compared to the same period last year.
To mitigate the impact of rising airfare prices, the Civil Aviation Authority has instructed airlines to offer flexible pricing options and continue providing promotional fares on domestic routes that align with market demand, as well as the needs of the people and major tourism events.
Nonetheless, the Civil Aviation Authority acknowledged that airlines are currently offering tickets at relatively low prices compared to the regulated price ceiling.
Airlines Accelerate Aircraft Leasing
To address the shortage of aircraft, airlines have recently accelerated their leasing efforts.
Vietnam Airlines has recently added new Airbus A320Neo and Boeing 787-10 aircraft to its fleet in July. The airline will also increase night flights by thousands, operating from 9 PM to 5 AM the next day.
Vietjet has announced an additional 3,100 flights across its domestic network, equivalent to 1.4 million additional tickets from now until the end of the year.
Pacific Airlines has leased an additional aircraft from Vietnam Airlines. This is the second of three aircraft that Pacific Airlines is leasing from Vietnam Airlines.
Bamboo Airways has also wet-leased three Airbus A320 aircraft, bringing its total operating fleet to eight. The airline plans to lease more aircraft to expand its fleet to 12 by the end of this year and 18 by the end of 2025, market conditions permitting.
Hanoi to reclaim over 2,600 hectares of agricultural land in two districts
The plan for land use in 2024 for Hoang Mai district and Dong Anh district has just been approved by the city of Hanoi. As a result, a total area of over 2,600ha of agricultural land is expected to be reclaimed by these two units within the year.
Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
A 3km road in the heart of Hanoi passing through a series of major projects, connecting Vingroup’s planned projects and Nam Cuong’s mega urban area, will be opened to traffic in the next 2 months.
Le Quang Dao Street, stretching over 2.6 kilometers, is located between Thang Long Boulevard and Ring Road 3.5. Currently under construction, it is set to be completed and opened for traffic on April 1st.
