Currently, airfares to tourist destinations in Asia, Europe and the US have started to increase by 20-35% during peak season compared to before.

A representative of World Transportation Services Joint Stock Company (WorldTrans) said the price of airline tickets to and from Vietnam is currently up 20-35% compared to the time before the epidemic due to increased travel demand and the impact of fuel prices . According to him, European tours and itineraries such as the UK, Germany and Australia are currently popular with customers.

“Currently, the ticket price from Ho Chi Minh City to Korea is VND 9 to 13 million/ticket; The route between Ho Chi Minh City and Europe has an average price of 18 million to 27 million dong/ticket, and Ho Chi Minh City – the US has about 41 to 51 million dong/ticket,” he said.

In addition, the airfare listed on Vietravel Airlines’ website also shows that airfare is increasing day by day, for example, the route from Ho Chi Minh City to Singapore on June 30 costs VND 2.4 million/ticket and continued to increase gradually increasing to more than 4 million VND/ticket on July 8. Similarly, the Ho Chi Minh City – Netherlands route cost only over 20 million VND/ticket at the beginning of July, but by the end of the month it had doubled to about 42 million VND/ticket.

Ms. Tran Mai Quyen, from Go Vap district, Ho Chi Minh City, said she was hesitant about her travel plan to Korea in early July. “When I heard that Korea has officially re-issued tourist visas for returning tourists, I was very happy because I had waited a long time for this trip. However, when I look at the airfare, I’m really shocked because the ticket price is much higher than before,” Quyen said.

“A friend of mine wanted to travel to Bali (Indonesia) but after looking at the ticket price also decided to cancel the trip because at the same time in 2019 the plane ticket cost only about 4 million VND/ticket, but now the price for this route are more than 11 million VND/ticket,” added Ms Quyen.

According to statistics from the Civil Aviation Authority of Vietnam, the number of international visitors reached about 650,000 in May, an increase of 45.87% from April.

With Vietnamese airlines’ transport reaching 254.2 thousand passengers, an increase of 58.2% compared to April and the transport of foreign airlines reaching 395.6 thousand passengers, an increase of 38.8% compared to May 4. Overall in the first 5 months of 2022, international flights have 590.9 thousand passengers, an increase of 904.2% compared to the first 5 months of 2021.

On the other hand, airline fuel is the largest operating cost, accounting for between 30% and 60% of the average cost per year.

By measurements, since the conflict between Russia and Ukraine took place at the end of February, fuel prices in the world have risen, especially the price of Jet A1 fuel has risen and this is also the main reason for the increase in airfare.

Last April, the Civil Aviation Administration of Vietnam submitted a proposal to the Ministry of Transport to approve the policy to adjust the maximum price for domestic passenger transport. This department proposes to adjust the ceiling of the service price bracket to the level prescribed in 2014 (an average increase of 3.75% compared to the current regulated price bracket).

According to the Civil Aviation Authority of Vietnam, if the average fuel price remains at USD 130/barrel in 2022, airline transportation costs will also increase by about VND 15,000 billion.

Airline representatives also raised the unit’s difficulties in light of increased fuel prices in April. For example, if the price of jet fuel remains at USD 130/barrel through 2022, Bamboo Airways’ additional fuel costs will increase by approximately VND 3,200 billion, with Vietnam Airlines at VND 5,700 billion, Vietjet at VND 5,200 billion and Vietravel Airlines at VND310 billion. .

@ Saigon Times



Source: Vietnam Insider

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