The primary cause of this downturn is attributed to high airfares.

At a conference held on July 3 to review the first half of the year and outline tasks for the second half of 2024, Dinh Viet Thang, Director of the Civil Aviation Authority of Vietnam (CAAV), reported that the total number of passengers in the first six months of this year is estimated at 38.1 million, an increase of 6.7% compared to the same period in 2023.

Of these, international passengers reached over 21 million, a rise of more than 44% compared to the same period in 2023 and exceeding the pre-pandemic levels of 2019. However, domestic passengers only reached 17 million, a decrease of over 19% from the same period last year.

This significant achievement in international travel comes amidst a shortage of aircraft. More than 40 planes from Vietnam Airlines and Vietjet Air, primarily the A321 models, were recalled for maintenance due to manufacturer engine issues. Bamboo Airways reduced its fleet to fewer than 10 aircraft as part of its restructuring efforts. Domestic airlines' executives acknowledged the difficulty in leasing additional planes.

By the summer 2024 schedule, 63 foreign airlines and 4 Vietnamese airlines had fully restored and expanded routes to new markets in Central Asia, India, and Australia.

The Chinese transport market is gradually recovering, expected to reach 2.5 million passengers in the first half of the year, an increase of over three times compared to the same period in 2023 and 62% of the same period in 2019. This recovery positions China as the second-largest international market in Q2/2024.

South Korea remains the most important market, with an estimated 5.3 million passengers in the past six months.

According to Thang, the domestic market's decline is due to the shortage of aircraft, forcing domestic airlines to reduce capacity.

This shortage has led to a significant increase in airfares. Despite efforts by airlines to lease more planes, adjust flight schedules, and increase supply, particularly for late-night and early-morning flights during the peak summer season, the domestic market still saw a sharp decline compared to 2023 and 2019.

In response, the CAAV has requested Vietnamese airlines to boost their transport capacity and increase supply on both international and domestic routes.

Airlines are urged to work actively with global aircraft lessors to find additional planes to replace those grounded due to engine recalls. They are also encouraged to increase supply on domestic and tourist routes.

Regarding airfare, airlines must strictly comply with regulations on domestic passenger transport pricing, declare and list prices transparently, and clearly explain fare components to avoid customer confusion.

Thang noted that the CAAV will continue to direct airlines to implement measures ensuring the number of flights not lower than in 2023, such as reducing turnaround times, optimizing daily aircraft utilization, and increasing flights after 10 PM.

Additionally, the CAAV will closely monitor the operations and fleets of airlines, especially those undergoing restructuring like Bamboo Airways and Pacific Airlines, to ensure safe and secure operations and protect passenger rights.

Ngoc Ha