The transportation authority has reported an increase in economy-class airfares compared to the same period in 2023, but these prices remain within the regulated price framework.
Since the beginning of the year, the average economy class ticket price on some routes has increased compared to the same period in 2023. Photo: Trong Hieu.
The Ministry of Transport (MOT) recently issued a document in response to local voters’ concerns about rising domestic airfare prices, which directly affects people’s travel needs, especially during holiday periods.
To balance the interests of consumers and airlines, voters suggested that the MOT review the cost structure and closely monitor airfare prices, contributing to price stabilization and better service for public travel needs.
In response to the cost structure of flights, based on data from the two largest carriers (Vietnam Airlines and Vietjet Air), the MOT outlines the proportion of total flight costs in 2023.
Of these, fuel costs accounted for 37-42%; aircraft equipment, maintenance, and repair costs made up 32-41%; flight services, such as ground handling and air traffic control, were 6-7%; and other costs, including direct labor, sales, management, and passenger services, ranged from 16-19%.
Since the beginning of the year, the regulatory authority noted that the average economy-class ticket prices on several domestic routes have increased compared to the same period in 2023. However, after inspecting ticket sales, they confirmed that airlines are tickets selling within the regulated price framework.
The MOT emphasizes that the increase in airfares aligns with global trends, driven by factors such as market supply-demand imbalances (due to a reduction in the size of airline fleets and high travel demand during holidays and festivals) and fluctuations from rising fuel prices and exchange rates.
To help reduce the pressure on ticket prices in the coming period, the MOT will continue implementing measures to stabilize the aviation transport sector. This includes balancing supply and demand on both domestic and international routes to meet passenger air travel needs.
Key solutions the ministry plans to implement include facilitating airlines in leasing additional aircraft, adjusting flight operation times, optimizing daily aircraft utilization, and increasing night flights. These measures aim to compensate for the supply shortage caused by fleet reductions.
Additionally, the regulatory authority will continue to strengthen the implementation and oversight of measures related to price registration, price listing, and the disclosure of pricing information in accordance with legal regulations. Passengers will also be encouraged to plan their ticket purchases early to have more options and access suitable ticket prices.
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Source: Vietnam Insider