Hoang Loan of HCMC was surprised by the fare when booking a flight to Singapore for a business trip, and said it was the lowest since the Covid-19 pandemic.

"Last year, a one-way ticket from HCMC to Singapore cost VND3.2 million (US$122), while this year I paid just over VND1.6 million."

A rapid increase in capacity by Vietnamese airlines this year has intensified competition, lowering fares.

They now offer tickets starting at VND1.6 million for HCMC-Singapore flights and VND1.9 million for HCMC-Bangkok flights. However, some foreign airlines on the same routes still demand two or three times these fares.

On the HCMC-Jakarta route too, fares have declined from VND7-10 million in the past to VND6.3 million. Fares from Hanoi and HCMC to Europe and Northeast Asia have fallen by 10-15% from last year.

Aircraft seen at Noi Bai International Airport in Hanoi, September 2021. Photo by VnExpress/Ngoc Thanh

Vietnam is expected to have 7.3 million available seats in August, up 10% from the same period last year and second in Southeast Asia only after Indonesia, according to British aviation data provider OAG. Vietnam Airlines will account for 2.8 million seats, and Vietjet Air for 2.2 million.

Flight frequencies on some international routes have also been increased and new routes are set to be added. Vietjet said it has increased the frequency on its HCMC-Kuala Lumpur route to seven flights a week during the peak season.

The budget airline will launch the HCMC-Colombo route on August 18, and the Hanoi-Almaty and Hanoi-Prague routes in October.

Hong Thanh, owner of an airline ticket agency in HCMC, said increased supply and competition among airlines are key reasons international airfares have cooled, especially as demand for overseas travel remains muted this year.

Fuel costs have declined. On July 1, the government reduced preferential import tariffs, environmental protection taxes, and value-added tax policies on gasoline and aviation fuel until Sep. 30, helping reduce airlines' costs.