Vietnam’s Air Travel Market Sees Mixed Trends in 2024

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Domestic passengers only reached 17 million in H1/2024, a decrease of over 19% from the same period last year.

Over the first half of 2024, the global economic and political situation would remain challenging, continuing to impact the airline industry. Vietnam's air travel market revealed contrasting trends between international and domestic travel.

Serving 21 million international air travelers, statistics have shown a 44% increase compared to the same period in 2023. However, domestic air travel declined by 19% from last year to 17 million passengers which was largely driven by rising airfares, according to the Civil Aviation Authority of Vietnam (CAAV). Despite domestic challenges, the CAAV Director announced a 6.7% year-on-year increase to 38.1 million passengers in the first six months and highlighted the sector’s resilience when international passenger numbers exceeded pre-pandemic levels.

Furthermore,  domestic capacity was affected due to the shortage of aircraft. Maintenance for engine issues has been noted as the primary answer as to why over 40 planes from Vietnam Airlines and Vietjet Air were recalled, and Bamboo Airways reduced its fleet to fewer than 10 aircraft. This abrupt shortage led to higher airfares, though countless efforts were made to lease additional planes and adjust flight schedules.

The Chinese air travel market showed signs of recovery, with 2.5 million passengers, a threefold increase from 2023. South Korea remained Vietnam’s largest international market, serving 5.3 million passengers in the first half of the year.

In response to the domestic decline, the CAAV urged airlines to increase capacity, lease more aircraft, and ensure compliance with fare regulations to respond to growing demand better.

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