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Vietnam aviation recovery expected by year-end

Friday, 26/01/2024 | 10:53:08 [GMT +7] A  A

The aviation market is set to fully recover by the end of this year as the Asia Pacific warms up, according to the Civil Aviation Authority of Vietnam.

Vietnam aviation recovery expected by year-end
Vietnam Airlines jet seen at Noi Bai International Airport in Hanoi. Photo by VnExpress/Giang Huy

It is likely to see 84 million passengers this year, up 15% from 2023 and 6% from 2019, the year before Covid broke out, it said in a report.

Domestic passenger numbers would rise by 3% to over 41 million and international travelers would make up the remaining 43 million, it said.

"The aviation market will recover by the end of the year ... as [Vietnamese] localities and countries are set to promote tourism."

But inflation and high fuel prices could throw a spanner in the works as some countries continue to have tight monetary policies and conflicts continue in the Middle East.

Jet engine manufacturer Pratt & Wittney’s recall of its products is set to cause an aircraft shortage.

Vietnam Airlines Group chairman Dang Ngoc Hoa said the state-owned carrier would restructure its routes this year based on the recovery of each market.

Changes to ticket sales and flight schedules would be made to increase passenger numbers, he said.

But some key markets such as Japan, South Korea and China have yet to fully recover and the inadequacy of Vietnamese airports could also pose challenges, he said.

The overload at the HCMC and Hanoi airports last year caused his airline losses of nearly VND500 billion, he added.

The civil aviation authority plans to seek cuts in taxes and fees to support aviation businesses.

The Asia Pacific aviation market is seeing the slowest recovery globally, but could see a turnaround from losses last year to profits of $1.1 billion this year, according to the International Air Transport Association.

Source: VnExpress