Starting from mid-September 2024, airlines have begun announcing plans to sell tickets for the 2025 Lunar New Year in order to help people plan their travel early and have the chance to buy tickets at reasonable prices.
Certain airline ticket agents have indicated that the cost of economy class tickets for the HCMC - Hanoi route has surged to twice the usual price during the peak period leading up to the 2025 New Year. The minimum fare is currently set at VND1.847 million (US$75.11) per ticket, while the maximum exceeds VND3.8 million per ticket.
These rates are expected to remain stable and will see a substantial increase approximately eight days prior to the Lunar New Year.
Specifically, from January 22 to January 28, 2025, ticket prices range from a low of VND 3.6 million to nearly VND4 million . A similar trend is observed for return flights after the New Year and Lunar New Year.
Meanwhile, airfares of the Ho Chi Minh City - Vinh (in the Central Province of Nghe An) route, one of the "hottest" routes during the annual Tet holiday are also sky-high from January 16 to January 28, 2025. Accordingly, the lowest price is VND 3.7 million per ticket and the highest is VND3.9 million a ticket on the days close to Tet.
As for the Hanoi - Phu Quoc route from January 29, 2025 to February 1, 2025, the lowest price is VND 2.9 million a ticket and the highest is VND4.5 million a ticket.
Staff Nguyen Thi Mai of Mai Thanh air ticket agency in Hanoi said that there is a wide availability of Tet airfares; however, the elevated prices have led to a reluctance among consumers to make purchases. In comparison to previous years, the ticket prices for this year's Tet celebrations are significantly higher, and even those who attempt to purchase tickets in advance are finding it difficult to secure affordable options.
In general, this year's Tet tickets are higher than many people can afford, the highest and lowest prices only differ by a few hundred thousand Vietnamese dong. If a family of four takes a round trip during Tet, the airfare alone will cost about 20-30 million Vietnamese dong.
In the initial phase of ticket sales for the 2025 Lunar New Year, Vietnam Airlines, Pacific Airlines, and VASCO plan to offer nearly 1.5 million seats, while Vietjet will provide 2.6 million seats. The airlines have stated that they will assess market demand and allocate resources accordingly for the subsequent round of Tet ticket sales.
Director Dinh Viet Thang of the Civil Aviation Authority of Vietnam said that from the beginning of 2024 until now, the average economy class ticket price on some domestic routes has increased at times compared to the same period in 2023, focusing on good time frames during peak periods.
He further explained that Vietnamese airline fares have risen in line with global price trends, influenced by market supply and demand factors. These include a shrinking aircraft fleet, increased travel demand during holidays and the Lunar New Year, as well as cost fluctuations in fuel prices and exchange rates.
According to reports from Vietnam Airlines and Vietjet Air, many costs affect prices, including increased unit prices for leasing and purchasing aircraft worldwide and an average USD/VND exchange rate increase of 4.4 percent compared to 2023. Some airlines also have increased financial costs due to additional loans to pay for aircraft leasing, operating costs, exploitation activities and exchange rate differences in aircraft business activities.
In addition, Jet A1 fuel prices in the Vietnamese market fluctuate with global prices and are significantly impacted by three types of taxes comprising import tax on gasoline, environmental protection tax, and value-added tax. These taxes collectively account for 7.7 percent to 8.7 percent of the total flight cost.
According to the Civil Aviation Authority of Vietnam, state management agencies have inspected and monitored ticket sales at airlines and confirmed that they are complying with regulations on airfare, not exceeding the price ceiling. However, reducing airfares in the current context is very challenging.
The Civil Aviation Authority of Vietnam has indicated that airlines are diligently organizing and optimizing their transport resources. They are collaborating with ground service providers to guarantee a sufficient supply, accelerating the acquisition of leased and newly purchased aircraft, and reintroducing aircraft that have undergone engine repairs and maintenance by manufacturers.
Some airlines have plans to receive and lease additional aircraft. Specifically, Vietnam Airlines is expected to receive three more aircraft; Vietjet Air plans to receive eight aircraft; Bamboo Airways and Vietravel Airlines are also planning to increase their fleet to match their capacity and market development needs.
To help reduce prices on domestic airfares due to market supply and demand factors, the Civil Aviation Authority of Vietnam has been implementing various measures; ensuring and stabilizing the air transport force to provide appropriate supply and balance load on routes.
Amongst solutions, the director of the Civil Aviation Authority of Vietnam stressed that several key measures include maximizing conditions for airlines to lease additional aircraft; adjusting aircraft operation times, reducing turnaround times to transition between flights, optimizing aircraft operation times during the day.
Last but not least, he said that increasing flights in the late afternoon and evening and adding flights at key airports during peak periods also help reduce high airfares of domestic flights as present levels.
