Hoang Loan, residing in Xuan Hoa ward, was surprised by the flight price she secured for a business trip from TP HCM to Singapore, noting it was the lowest she had paid since the pandemic.

"Last year, the TP HCM - Singapore route sometimes reached 3,2 million VND one way, but this year I only paid over 1,6 million VND, including taxes and fees," she stated.

For the return journey, the ticket also had a promotional price of 19.000 VND, but after adding taxes and fees, the total Hoang Loan had to pay was about 2,4 million VND. She noted that airport fees in Singapore are higher than those for flights from Vietnam, so even with the same listed ticket price, the actual amount paid differs significantly.

Including both directions, her trip to Singapore cost over 4 million VND, roughly one half the price compared to the same period last year.

After Covid-19, international routes took a long time to recover, and supply had not returned to previous levels, keeping prices high, especially during peak travel seasons. This year, supply has increased more rapidly, leading to greater competition among airlines and creating room for price reductions.

The price Hoang Loan paid is not an isolated case. A survey of routes from TP HCM to Singapore and Thailand reveals promotional fares ranging from 19.000-90.000 VND, excluding taxes and fees, for most flights in August and September. After these additions, TP HCM - Singapore tickets start from over 1,6 million VND one way, while TP HCM - Bangkok routes are under 1,9 million VND.

Tickets from some foreign airlines on the same routes are currently about 2-3 times higher than those of Vietnamese carriers.

From Hanoi to Singapore and Thailand, domestic airline ticket prices range from 2,6-3 million VND one way, including taxes and fees. On some days in August, the lowest prices were just over 2 million VND.

For the TP HCM - Jakarta route, prices have also decreased, but they remain higher than those for Singapore and Thailand. Previously, round-trip tickets typically cost 7-10 million VND; now, the lowest price is about 6,3 million VND, including taxes and fees, equivalent to over 3 million VND per direction. The higher price is partly due to the longer flight distance.

Routes from Hanoi and TP HCM to Europe and Northeast Asia have also seen a reduction of about 10-15% compared to before.

TP HCM - Singapore flight tickets in August, September (excluding taxes and fees). Photo: Thi Ha

Prices are falling amid an increase in Vietnam's aviation supply. According to forecast data from UK-based aviation data provider OAG, Vietnam will have approximately 7,3 million seats available in August, a 10% increase compared to the same period last year, ranking second in Southeast Asia after Indonesia.

While the total operating capacity of the Southeast Asian aviation market in August increased by only 0,8% year-on-year, Vietnam's supply surged by 10%. Specifically, Vietnam Airlines offered about 2,8 million seats, an 8,2% increase, while Vietjet provided approximately 2,24 million seats.

International flight supply is also being boosted. Vietjet Air announced an increase in frequency for the TP HCM - Kuala Lumpur route to seven flights per week during peak season, and the launch of the TP HCM - Colombo route from 18/8. The airline is also preparing to operate Hanoi - Almaty and Hanoi - Prague routes starting in October.

Hong Thanh, owner of a flight ticket agency in TP HCM, stated that increased supply and competition among airlines are key reasons for the cooling international ticket prices. Airlines are boosting promotions to stimulate demand, as purchasing power has not recovered as expected.

Fuel costs are also more favorable for airlines. From 1/7, the Government extended the application period for preferential import duties, environmental protection taxes, and value-added tax on petroleum products and jet fuel until 30/9/2026, which helps reduce a portion of airlines' input costs.

Regarding demand, the international tourist market to Vietnam is growing strongly. In the first seven months of the year, Vietnam welcomed nearly 14 million international visitors, an increase of nearly 14% compared to the same period last year. In July alone, the number of visitors reached approximately 1,67 million, with air travel accounting for nearly 83%.

Increased international travel demand, coupled with augmented supply, forces airlines to compete more fiercely to attract customers. This is also one of the factors driving down overall prices this summer.

Not only international routes, but airlines also consistently stimulated demand in the domestic market during the peak summer. Many programs offered tickets for some routes at 0 VND or a few tens of thousands of VND, excluding taxes and fees.

Thi Ha