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Wednesday, June 19, 2024

Vietnam’s aviation industry starts recovering from pandemic losses

The Saigon Times

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HCMC – Vietnam Airlines and Vietjet Air have reported profits while Bamboo Airways is also on track to reach its breakeven point, partly backed by sharp increases in domestic and international flights during the Tet holiday early this year.

Vietnam Airlines has finally eased off 12 consecutive quarters of losses since the Covid-19 outbreak. According to the airline’s latest financial statement, its first-quarter revenue amounted to VND23.64 trillion, doubling the figure from the same period last year.

The national flag carrier posted consolidated pre-tax profit of VND19.3 billion in the first quarter, compared to a loss of over VND2,600 billion in the same period last year.

The positive result is attributed to efficient operations during the Lunar New Year period and the recovery of international aviation markets, especially China which has gradually eased its Covid-19 travel restrictions.

Similarly, Vietjet Air’s revenue in the first three months of this year reached nearly VND12,900 billion, the highest in 12 quarters. Of this, revenue from international markets improved, accounting for 45% of the privately-held airline’s total passenger transport revenue.

The airline reported a pre-tax profit of nearly VND243 billion, nearly equal to the same period in 2022.

Vietjet Air operated 31,300 flights and transported nearly 5.4 million passengers in the first quarter, up 57% and 75% compared to the year-ago period, respectively.

At the shareholders meeting in early April, Bamboo Airways chairman Nguyen Ngoc Trong said that the airline might have reached its breakeven point in the first quarter of 2023 as its 30 aircraft were operating at full capacity.

Bamboo Airways plans to receive 6-8 new aircraft and work with partners in China to open new routes there from now until the end of the third quarter. The airline will add flights on many routes to Southeast and Northeast Asia in the second half of the year.

Vietravel Airlines is also planning to take delivery of an additional three aircraft to increase its presence in international markets. Meanwhile, Vietjet Air will continue to develop new routes to the Indian, Japanese, and South Korean markets this year.

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