Aviation industry continues to rebound strongly
Aviation industry continues to rebound strongly
The aviation industry continues showing signs of recovery, with business results growing strongly after struggling for a while.
The domestic aviation market continued to grow in the first four months of 2023 after recording a higher number of passengers than the pre-COVID-19 pandemic years, while the international market is rebounding positively.
According to the Civil Aviation Authority of Vietnam, domestic airlines carried 18.2 million passengers during the period, up 56 per cent on-year.
As the tourism season, which falls in the summer, has kicked off at the beginning of the month, the demand for air travel is expected to rise sharply.
Vietjet Air said that 2023 is a bright year for the aviation industry, as revenue and profit are likely to increase sharply thanks to the reopening of the Chinese market, visa relaxation, and especially lower jet fuel prices.
The Government is also considering a proposal to remove the ceiling price of air tickets and allow fuel surcharges. If approved, it will help airlines recover quickly and increase competitiveness with international airlines.
Statistics from the Airports Corporation of Vietnam (ACV) showed that in the first four months, its total passengers were 36.4 million. It is forecast that by the end of 2023, the number of international visitors to Viet Nam will reach about 30 million, equal to 80 per cent of 2019.
At the 2023 annual general meeting of shareholders, Vu The Phiet, general director of ACV, said that in 2024, the number of domestic tourists will exceed that of 2019, while the number of international tourists will recover to equal or exceed the figure of 2019. This is the premise to boost ACV's revenue and profit, he added.
In the first quarter of 2023, ACV's revenue and profit after tax were over VND4.7 trillion (US$199.6 million) and VND1.6 trillion, respectively, up 124.6 per cent and 87.3 per cent over last year.
This year, ACV sets to reach 118 million passengers, an increase of 20 per cent, with revenue up 22 per cent to VND19.36 trillion and a profit before tax of nearly VND8.5 trillion, up 12 per cent.
Other airlines also performed well in the first quarter.
In a separate financial statement, Vietjet Air reported a net revenue in air passengers of VND12.88 trillion and profit after tax of VND168 billion, up 285.6 per cent and 317.1 per cent year-on-year, respectively.
In its consolidated financial statements, revenue reached nearly VND13 trillion and profit after tax was VND172.2 billion.
Vietjet Air said that in the first quarter of 2023, the business operated 31,300 flights, up 57 per cent over last year.
The carrier has opened ten new routes, including four domestic routes and six international routes, bringing the total number of routes by the end of the first quarter of 2023 to 55 domestic and 50 international.
It also focuses on controlling operating costs.
Similarly, Vietnam Airlines JSC started to make profit before tax, after a long period of losses. Particularly, its net revenue in the first quarter of this year reached VND3.49 trillion, double the result of last year, with a profit before tax of VND19.3 billion. During the 2020-22 period, it lost thousands of billions of dong each quarter.
The flag carrier said that revenue in providing services increased by 116.2 per cent on-year in the first quarter. Of which, revenue from domestic flights rose by 76.5 per cent while that from international flights increased by 618.5 per cent year-on-year.
Vietnam Airlines has restored the entire domestic flight network and restored 90 per cent of the international routes compared to before the pandemic.
