Hanoi, November 23 - Vietnamese airlines have reported improved business results, buoyed by the resurgence of the tourism sector. However, they face challenges due to high oil prices and intense competition from international carriers.
According to Vietnam News Agency, Vietnam saw a significant increase in foreign arrivals, with 8.9 million visitors between January and September, a 4.75-fold increase from last year. More than 6.1 million of these tourists arrived by air. This rebound in tourism has positively impacted domestic airlines.
Vietnam Airlines Joint Stock Company revealed a consistent recovery in its financial performance, with an 11.7% year-on-year increase in turnover for Quarter 3, totaling over 23.75 trillion VND (approximately 981.6 million USD). The airline's revenue for January-September reached nearly 68.1 trillion VND, a 32.5% rise from the previous year. Despite these gains, the company reported a loss of over 3.5 trillion VND, half of last year's figure. The Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines, and Vasco, transported over 18 million passengers during this period.
While Vietjet Air also saw a 25% revenue increase in Quarter 3, it faces significant challenges. Bamboo Airways, facing difficulties, has adjusted its flight schedule, suspending various international flights. Despite their recovery, domestic airlines are not yet profitable due to airfares not keeping pace with rising expenditures. Vietnam Airlines noted that domestic ticket prices in June were 6.6% lower than in June 2019, pre-pandemic.
Fuel costs, a major expense for airlines, have increased significantly, with average fuel prices rising 85% since 2015. The Vietnam Airlines Group called for governmental support to improve the sector's competitive edge and suggested lifting the airfare cap on domestic routes, a change that would require amendments to aviation and pricing laws. The airline proposed extending airfare caps in the short term and introducing floor prices for domestic tickets to create a sustainable competitive environment and protect passenger rights and benefits.