Domestic airfares plunge to 6-year low

Summer is usually a high time for travel demand, but this year, ticket sellers are reporting a 10-40% decline in prices.

A one-way Vietnam Airlines flight from Hanoi to Phu Quoc Island in July costs only from VND1.1 million (US$46), with taxes and fees included. Booking ahead for a trip in August costs only VND800,000.

Prices were VND1.6-3.5 million in the same period in recent years.

From HCMC, passengers can fly to Phu Quoc Island from VND640,000.

Other flights from Hanoi and HCMC to Nha Trang, Da Nang, Hue and Da Lat cost VND1-1.2 million per one-way ticket, down 10-40% year-on-year.

Pham Thi Thu, a ticket seller in Hanoi, said that prices have never been this low since 2018.

Demands for air travel increased by 5% year-on-year but fell by 30% from pre-pandemic levels, she added.

Oanh, manager of a ticket office in HCMC’s Tan Binh District, said that inflation and economic challenges have discouraged people and businesses from making travel plans this year.

Some who still travel are choosing other options, such as cars or buses, instead of airplanes, she said.

Aviation industry insiders that VnExpress spoke to also confirm a plunge in demand.

Some airlines have been offering strong discounts of 15-30% to boost sales.

International travel demand this summer is 30% lower year-on-year, and therefore airlines are using spare aircraft for domestic travels, which increases supply and lowers prices.

A representative for Vietnam Airlines Group also said that prices have not been this low for many years.