Vietnam’s aviation market to be on full recovery by year end

Vietnamese airplanes at Noi Bai International Airport. (Photo: VietnamPlus)

Hanoi - The Vietnamese aviation market is set to fully recover by the end of this year since the Asia-Pacific market warms up, according to the Civil Aviation Authority of Vietnam (CAAV).

The agency cited the International Air Transport Association (IATA) as saying that the global aviation industry is forecast to make a full recovery by the end of this year, with the Asia-Pacific market expected to report a net profit of 1.1 billion USD in the year.

The Vietnamese aviation sector is likely to transport some 84.2 million passengers, rising 15 per cent against 2023 and 6 per cent against 2019 – the year before the COVID-19 pandemic broke out.

Of the figure, there will be about 41.5 million domestic passengers, up 3.3 per cent year-on-year and 11 per cent from 2019, while the number of international passengers will rise 15.8 per cent from last year to 42.7 million.

Additionally, the sector will handle 1.16 million tonnes of cargo in 2024, growing 8.5% year-on-year and accounting for 92.2 per cent of the volume in 2019.

The aviation industry will be propped up by both domestic and foreign tourism development programmes, while airlines’ study to open new air routes is a good chance to develop the market, the CAAV said.

However, the sector may experience formidable challenges that could stifle its recovery, including high fuel prices, escalating military conflicts in several countries, shortage of high-quality human resources and US aerospace manufacturer Pratt & Whitney’s recall of airplane engines.

The CAAV described aviation infrastructure lagging behind travel growth as another challenge to the sector’s recovery progress in 2024.

With a view to supporting airlines, the CAAV will continue keeping a close watch on the market demand, and join hands with competent agencies in the sector to pen timely and rational measures.

It will recommend the Government to cut several taxes and service prices and provide aviation enterprises with interest rate support policies while creating favourable conditions for airlines to improve operation capacity.

Besides the two largest airports in the country – Noi Bai and Tan Son Nhat, the CAAV has encouraged airlines to operate their international flights to Da Nang International Airport, Cam Ranh International Airport, Phu Bai International Airport, Van Don International Airport, Cat Bi International Airport, and domestic airports that can serve international flights such as Lien Khuong (Lam Dong province) and Phu Cat (Binh Dinh province).

In the meantime, it will direct Vietnamese airlines to enhance cooperation with travel firms and localities to roll out tourism stimulus programmes, launch tour packages, and increase the number of charter flights from new markets in the Republic of Korea, China and Japan to Vietnamese tourist destinations.

Additionally, it will effectively carry out the approved planning project, upgrade aviation infrastructure, particularly at the Noi Bai International Airport and Tan Son Nhat International Airport, while speeding up construction at Long Thanh International Airport.

Improving management and operation capacity at airports will be paid due regard to better serve travel demands.

According to the International Air Transport Association, the global aviation market will enjoy full recovery by the end of this year. Although the Asia-Pacific region is seeing the slowest recovery, it is predicted to swing from a loss for years to a net profit of 1.1 billion USD this year.

The industry’s revenues are expected to hit an historic high of 964 billion USD, with passenger revenues reaching 717 billion USD, up 12 per cent year-on-year.

Domestic aviation industry poised for full recovery in late 2024 Vietnam’s aviation market is expected to fully recover in late 2024, closely tied to the positive trajectory of the Asia-Pacific, according to the Civil Aviation Authority of Vietnam (CAAV).