Vietnamese airlines make world-beating recovery
The high demand for travel has helped Vietnam’s airline revenues grow impressively and exceed the set forecasts.
According to flight statistics from flightradar24 and Airbus, in the first half of 2022, Vietnam’s domestic aviation market recovered faster than any other market with a growth rate of 123% over the same period in 2019. The number of passengers transported increased by 56% on-year to just over 20 million people, while the cargo volume also increased by 30%, reaching 765,000 tonnes.
Aviation data analysis site OAG also rated Vietnam as one of the top 10 countries with the strongest recovering domestic aviation market, next to the likes of China, Japan, Brazil, and North America.
Vietnam also currently boasts the busiest domestic flight routes in the region. First place belongs to Ho Chi Minh City-Hanoi, followed by Danang to both cities and Phu Quoc Island to both cities. The route between the capital and Ho Chi Minh City was also the second-busiest domestic flight worldwide in June.
According to the Vietnam National Administration of Tourism, among 954,500 international visitors to Vietnam in the first seven months of this year, there were more than 831,000 arrivals by air. In the domestic market, Vietnam’s airlines transported 20.78 million passengers, up 60% over the same period in 2021. The Civil Aviation Authority of Vietnam noted that, by the end of June, VASCO, Vietjet, Bamboo, Pacific Airlines, and Vietravel Airlines are operating nearly 60 domestic routes connecting the country’s three biggest cities with 19 local airports.
Flight routes to tourist destinations such as Quy Nhon, Phu Quoc, and Nha Trang are prioritised for high-frequency operation, in which the frequency to and from Phu Quoc currently reaches 100 domestic flights per day, an increase of nearly 30 trips compared to 2019. The seat occupancy rate on domestic routes in June also hit 85%-87% depending on the airline.
For the international aviation market, Vietnamese airlines have operated 68 international routes to 16 countries and territories, and are planning to increase the operating frequency and open a number of new routes.
Vietnam Airlines Group, which covers Vietnam Airlines, Pacific Airlines, and VASCO, reached nearly 9.5 million passengers in the first six months of 2022, up almost a quarter compared to the plan. The airline also recorded revenues of US$1.3 billion, up 113% over the same period.
Bamboo Airways has the most impressive growth rate with revenues exceeding US$43.4 million in April. Vietravel Airlines, a rookie in the aviation industry, saw the number of routes in June increase by 10%-15% over the previous month and up 40% over the same period in 2021.
Low-cost airline Vietjet added more than 150 flights in July compared to the previous month. This is also the only airline to maintain a positive profit despite skyrocketing fuel prices, with revenues of US$639 million and profit after tax of US$3.3 million in the first half of the year.
