A surprising decline in summer domestic Airfares: What’s driving the shift?

Surge in Ticket Supply Puts Downward Pressure on Prices

One of the biggest reasons behind the drop in airfares is a significant boost in seat availability across domestic flights.

According to the Civil Aviation Authority of Vietnam (CAAV), Summer 2025 will see around 68,558 domestic flights, offering approximately 14 million seats—a 21% increase in flights and 18% in seat capacity compared to Summer 2024.

Major airlines like Vietnam Airlines Group and Vietjet Air have strong plans to ramp up capacity, especially on key tourist routes such as Hanoi and Ho Chi Minh City to Da Nang, Nha Trang, Phu Quoc, and Da Lat.

This increase in supply is a major driver behind airlines adjusting their pricing policies, leading to the emergence of more budget-friendly airfare promotions this summer.

Red-Eye Flights” – A New Strategy for Affordable Travel

A standout feature in the airlines’ supply expansion strategy is the push to operate more night flights (typically from after 9:00 PM to before 5:00 AM the next morning).

Airlines are now maximizing the use of this time frame to optimize fleet efficiency and reduce operational costs. Due to lower demand, these night flights naturally become a “paradise” for cheap airfares.

For example, on one of the busiest tourist routes, Ho Chi Minh City to Nha Trang airlines are operating up to 15 flights per day, with several red-eye options priced as low as VND 190,000 (excluding taxes and fees) during certain times in August 2025.

This strategy creates a win-win: airlines can make the most of their resources, while passengers have a chance to book cheaper flights and satisfy their travel cravings.

Macroeconomic factors and competition from other transport modes

Terminal T3 at Tan Son Nhat Airport has a total investment of nearly VND 11,000 billion and is scheduled to begin operations after more than 20 months of construction (Source: CafeF)

Beyond supply and operational strategies, several macro factors have contributed to a more stable airfare landscape:

  • Government Direction: The Vietnamese government continues to actively promote domestic tourism through supportive policies, ensuring airfare market stability.
  • Improved Aviation Infrastructure: Airport upgrades and expansions—including Long Thanh, Tan Son Nhat Terminal T3, and the expansion of Noi Bai Terminal T2—are expected to increase airport capacity by up to 60% compared to 2019, allowing airlines to confidently increase flight frequency without overloading infrastructure in the near future.
  • Competition from Road and Rail: The rapid development of expressways and high-quality train services is also providing increasingly convenient and cost-competitive travel alternatives.

Opportunities for Budget Flight Hunters

Summer 2025 is the ideal time to proactively plan your travels with a tight budget. Many airlines are rolling out enticing promotional programs, such as Vietnam Airlines’ “Brilliant Thursdays” and Vietjet Air’s “Zero Fare” promotions.

To seize these travel-saving opportunities, consider applying some key tips. Booking tickets 3–5 months in advance remains one of the most effective strategies—especially for popular routes during peak seasons.

The combination of increased supply, red-eye flight strategies, and favorable macroeconomic conditions has painted a promising picture for the domestic airfare market in this summer 2025. It’s a positive signal for anyone hoping for a complete summer getaway while keeping costs under control.

So pack your bags, watch the deals, and get ready to take off!

Published by Australian Hospitality Alumni Network Vietnam (AHA Vietnam)

The Official Platform for Australian Hospitality & Tourism Alumni and Professionals in Vietnam.

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