Why do airfares surge?

Passengers leave an aircraft at Noi Bai International Airport in Hanoi. Photo by VnExpress/Giang Huy

Airfares in Vietnam have risen in double-digits year-on-year, driven by a shortage of aircraft.

On the Hanoi-Ho Chi Minh City route, which has among the highest demand anywhere in the world, Vietnam Airlines charges VND2.64 million ($104) for a one-way ticket, up 14% from a year ago.

It is 11% up on Bamboo Airways at VND2 million, 24% up on Vietjet at VND1.74 million and 15% up on Vietravel Airlines at VND1.5 million.

Ticket prices comprise fare, system management fee, airport fee, payment fee and value-added tax.