No airline has broken the ceiling, so why do customers still feel that ticket prices are sky-high?

Airfares have been the hottest topic in the aviation industry since the beginning of the year.

Many times cheap tickets are not recorded

As Thanh Nien reported, the review results of the Civil Aviation Authority recorded: With 3 main routes ( Hanoi - Ho Chi Minh City, Hanoi - Da Nang and Ho Chi Minh City - Da Nang), although there is an increase in the proportion of high-priced segments, the majority of the ticket price structure sold by airlines is still in the low and medium price segments (from 60% - 70% of the number of tickets sold).

In addition, there are also routes that recorded a high increase in the rate of mid- and low-cost segments. Specifically, on the Ho Chi Minh City - Da Nang route, VNA and Vietjet both increased the number of low-cost segment tickets by +5% and +8% respectively; on the Ho Chi Minh City - Hanoi route, Bamboo Airways and Vietjet both increased the number of low-cost segment tickets by +7% and +11% respectively...

The results of checking airfares of 4 airlines are available.

However, in reality, during the April 30 - May 1 holiday period, many passengers reported that ticket prices on these routes were sky-high. For example, Ms. Thanh Xuan (District 3, Ho Chi Minh City) had to pay 2.5 million VND/way for a ticket for the Ho Chi Minh City - Da Nang route, equal to the peak of the Lunar New Year. There are many seats on the Ho Chi Minh City - Hanoi route, but no airline sells tickets for less than 2 million VND/way. Even the "cheapest" airline, Vietjet, also reached a peak of nearly 3.8 million VND/way, equivalent to about 7.6 million VND/round trip.

Explaining this paradox, an airline representative said that the Civil Aviation Authority's inspection focused on the period from January 1 to May 4, meaning not only during the peak period from April 30 to May 1. Statistics on the high-medium-low price ratio were calculated on flights throughout the day, including good times and early/late times. Passengers usually only look at and choose good times and high prices, while early/late flights with lower prices are rarely recorded.

Besides, people still have the mentality of buying tickets close to the date, while airlines often open a lower price range than the highest price from a fairly early stage, so when the number of tickets in the low range is sold out, customers who buy close to the date will only have tickets in the higher price range.

Passengers who buy tickets close to the date will not have the opportunity to buy tickets in the low price range.

Fuel price increase, exchange rate increase, aircraft shortage... ticket prices cannot be 'unchanged'

A representative of Vietnam Airlines explained: In general, it is true that airfares not only in Vietnam but also in the world have been recorded to increase compared to the time of the Covid-19 pandemic. In the recent period, due to international economic and political fluctuations and engine recalls by manufacturers, the world and Vietnam's aviation industry has been heavily affected by sharp increases in input costs, most notably fuel costs, engine rental, aircraft maintenance, exchange rate fluctuations and airport infrastructure congestion.

For example, fuel prices are currently at a high level of over 100 USD/barrel. It is forecasted that Vietnam Airlines' air transport costs in 2024 will have to increase by 5,527 billion VND compared to 2019 due to high fuel prices and increase by 4,729 billion VND due to exchange rate fluctuations. The price of renting aircraft engines in 2024 will also double compared to 2019; the price of spare parts and supplies will increase by 10 - 13%. Not to mention, the time to bring engines for repair has been extended by more than twice: In 2019, it took about 75 days, but now it takes 140 - 160 days. There are special cases up to 1 year. This causes revenue loss because the aircraft have to stay on the ground for a long time. Meanwhile, air traffic and ground congestion at major airports during the peak season makes flight times longer than planned, increasing and incurring costs.

Before the April 30 holiday, the Hanoi - Nha Trang flight had the highest price of over 3.5 million VND/way due to the good flight time (9:50, landing at the hotel is check-in time). If accepting to fly at a time considered "worse" for the travel itinerary, passengers can buy a ticket for over 1.8 million VND/way.

The shortage of aircraft is also a factor that seriously affects the ability to supply seats and ticket prices. Currently, Vietnam Airlines operates an average of 84 aircraft/month, an average shortage of 12% of operating aircraft compared to 2023. It is expected that by the end of 2024, the number of Airbus A321 NEOs will be up to 18-20 aircraft. At that time, the total operating aircraft of Vietnam Airlines will be only about 80.

The domestic and international aviation market is expected to continue to face many challenges from now until the end of the year.

The average dry lease price of aircraft has increased by 20-30% compared to the market before and immediately after Covid-19. Meanwhile, for wet lease aircraft during the peak summer season, which is the common peak season in many regions around the world, the wet lease price has increased, the number of wet lease aircraft on the market is also limited and the minimum price has doubled compared to the peak period of the recent Tet Giap Thin...

"All of the above input costs have a direct impact on airfares. Not only in Vietnam, but organizations around the world also predict that global airfares will increase by 3-7% in 2024 and will continue to increase in the following years," said a representative of Vietnam Airlines.

Source: https://thanhnien.vn/khong-hang-bay-nao-vuot-tran-sao-khach-van-co-cam-giac-gia-ve-cao-ngat-nguong-185240512114003524.htm