Starting in late 2023, domestic airfares in Vietnam have remained at record-high levels throughout 2024, with no signs of decreasing. While travelers flock to international destinations, domestic travel companies are struggling, and airlines are reporting substantial profits.

Airfares soar throughout the year

The CEO of a Hanoi-based travel company catering to European and American tourists lamented that domestic airfares from the New Year period to April 2025 have surged, making it nearly impossible for his company to secure tickets for their international clients.

For example, airfares for routes such as Hanoi to Da Nang or Hue during late December 2024 to early January 2025 have skyrocketed to 4.5 million VND (approximately 190 USD), compared to a typical peak price of around 2.5 million VND (approximately 105 USD).

Although the period coincides with the busy New Year travel season, these prices remain extraordinarily high, posing a significant challenge for the tourism industry.

This trend began in late 2023, with domestic airfares surging during the Lunar New Year holiday of 2024. Popular routes, such as Ho Chi Minh City to Hanoi or central provinces like Vinh, Thanh Hoa, and Quang Binh, were priced between 7 million and 7.2 million VND (approximately 300 USD) for round trips, even for inconvenient flight times.

Although airlines quickly leased additional aircraft, the high prices persisted throughout the year.

Even during the off-peak season in March and April, airfare rates showed no sign of declining.

Long holiday periods like April 30 to May 1 or September 2 saw airfares for routes such as Hanoi to Phu Quoc soar to 7–8 million VND (approximately 295–340 USD). Other routes, including Nha Trang, Con Dao, Da Nang, and Da Lat, ranged from 5–6 million VND (approximately 210–250 USD), making domestic travel prohibitively expensive for many.

According to the Vietnam Aviation Administration, domestic airfare prices increased by 15–20% and remained high throughout 2024. Current ticket prices for Lunar New Year 2025 continue to exceed 7 million VND for round-trip tickets on busy routes.

For travel businesses, rising airfare costs account for 50–70% of total tour expenses, severely impacting domestic tour packages. Destinations such as Da Nang, Quy Nhon, Tuy Hoa, and Phu Quoc have seen sharp declines in domestic tourists, who are opting instead for international destinations like Thailand, Malaysia, and South Korea, where tours are more affordable.

Statistics show that during peak holiday periods, up to 70% of Vietnamese tourists choose international trips over domestic ones, leaving local destinations struggling to attract visitors.

Underlying causes of high airfares

The Vietnam Aviation Administration attributes the issue to a reduced fleet size, which has directly affected domestic and international flight capacities in 2024 and 2025.

Over 40 aircraft from various airlines have been grounded since January for engine inspections. Experts predict these planes will not return to service until late 2026 or early 2027.

Additionally, Bamboo Airways has ceased operating its Embraer E190 fleet to restructure costs, while Pacific Airlines has returned all its leased aircraft to settle debts, further exacerbating the supply shortage.

Regulations introduced by the Ministry of Transport in March 2024 allowed for a 3.7–6.7% increase in price caps for domestic flights, further driving up airfare prices.

Fuel costs, foreign exchange rate fluctuations, and global trends in aviation expenses have also contributed to the increase. Vietnam Airlines reports that fuel and equipment costs rose by 76–77% in 2024, making price adjustments unavoidable.

However, there are concerns about the lack of transparency regarding the composition of airfare costs. While the Ministry of Finance maintains that taxes and fees account for only 10–30% of airfare prices, passengers often feel burdened by high ticket costs.

When will airfares stabilize?

Airlines have begun efforts to lease additional planes to meet the travel demand for Lunar New Year 2025. Vietjet Air plans to add six aircraft, while Vietnam Airlines is acquiring five more.

The Ministry of Transport has also introduced policies to reduce operating costs for airlines, such as discounts on takeoff and landing fees starting in 2025.

These measures are expected to gradually stabilize airfares, providing hope for more reasonable ticket prices in the coming years.

Ngoc Ha