Deemed one of the fastest recovering aviation markets, the country’s travel growth is now being deterred by a combination of factors, including an up to 50% increase in fares
[HO CHI MINH CITY] Vietnam, once boasting the world’s fastest-recovering domestic aviation market, is now grappling with a sharp decline in domestic air travel, falling by 20 per cent in the first five months of this year, as aircraft shortages force airlines to slash services and hike fares.
These further compound the challenges faced by the sluggish economy in the first half of this year.
From January to May, Vietnam experienced a 19.4 per cent plunge in domestic air transport passengers from the previous year, dropping to 17 million – a decline of 8 per cent from the same period in 2019, data from the Civil Aviation Authority of Vietnam (CAAV) indicated.
This decline followed an 18 per cent drop in the first quarter, one of the industry’s peak travel seasons, and the dip is expected to continue through the summer.
