A Vietnam Airlines aircraft parked at Tân Sơn Nhất International Airport in HCM City. VNS Photo Bồ Xuân Hiệp

HCM CITY — The Civil Aviation Authority of Vietnam (CAAV) has confirmed that the recent increase in domestic airfare complies with regulations set by authorities.

In a report sent to the Ministry of Finance, the CAAV attributed the rise to various factors, including higher fuel prices, exchange rate differences, engine recalls, aircraft lease costs, and increased demand.

The agency also warned that continued high demand may result in further price increases during the peak summer season.

Following public outcry, an inspection was conducted from May 7-9, focusing on pricing, transparency and information disclosure related to airfares since the beginning of the year.

The findings revealed that average economy class ticket prices on several domestic routes had increased by up to 25 per cent year-on-year in the first four months. But they were still below the regulated ceiling price.

Popular routes that have seen prices rising include between Hà Nội and HCM City, Hà Nội and Đà Nẵng, and HCM City and Đà Nẵng.

Despite claims that taxes and fees were contributing factors to the price hikes, tax authorities denied the claims.

Reports showed that domestic flight prices during the recent five-day holiday were 1.5 times higher than usual since March.

The transport ministry recently announced a hike in the maximum prices for domestic flight routes, starting from March 1.

The price hikes vary depending on the length of the route, with prices increasing by VNĐ50,000-250,000 per one-way ticket for routes longer than 500km.

For example, flights between 1,000km to less than 1,280km now have a maximum price of VNĐ3.4 million for one-way tickets.

The CAAV said that they would work closely with airlines to ensure transparency and clarity in presenting airfare information on their websites.

"While airlines have met the requirements to display ticket prices, including surcharges and fees, inconsistencies in the information presented on airlines' websites have caused confusion among customers," they noted.

Local airlines transported 13 million passengers in the first quarter, a 5 per cent decrease compared to the previous year, according to a report by aviation authorities.

Airfare of a local budget carrier displayed on a screen. VNS Photo Bồ Xuân Hiệp