The Soaring International Traveler Numbers, Yet a Lack of Domestic Passengers: Aviation Giant ACV Predicts a Whopping $6 Billion Profit for H1 2024

The aviation industry is buzzing with excitement as it records a remarkable passenger throughput of nearly 55 million, an impressive 48% of the annual target. International passenger numbers soar to new heights with a significant 38.5% increase compared to the previous period, while domestic passenger numbers witness a slight dip of 18.5%.

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According to the mid-year work conference held by the Vietnam Airports Corporation (ACV), the number of take-offs and landings reached 332,841, accounting for 47.1% of the annual plan and a decrease of 8.7% compared to the same period in 2023. International take-offs and landings reached 126,703, a 27.1% increase, while domestic take-offs and landings reached 206,138, a 22.2% decrease compared to 2023.

Passenger throughput reached nearly 54.7 million, representing 48% of the 2024 plan and a 3.8% decrease year-on-year. International passengers reached 20.25 million, a significant increase of 38.5%, while domestic passengers decreased by 18.5% to 34.4 million.

Cargo and mail throughput stood at 729,500 tons, accounting for 53.3% of the annual plan and reflecting a notable 25.7% increase compared to the first half of 2023.

In terms of business results, revenue for the first six months reached VND 11,061 billion, accounting for 54.42% of the annual plan and a 22% increase year-on-year. Pre-tax profit reached VND 5,983 billion, representing 63.8% of the plan and a roughly 15% increase compared to the first half of 2023. Estimated tax payments reached VND 1,847 billion, and financial settlement for 2023 was completed.

ACV’s production and business operations took place amid complex domestic and global market conditions. The slow global economic recovery, rising gold, dollar, and fuel prices, which increased input costs for industries including air transport, and escalating political instability in various regions disrupted supply chains. Additionally, the decline in the domestic aviation market due to challenges faced by airlines impacted ACV’s business operations.

Key projects are ahead of schedule, and digital transformation efforts are accelerated.

At the conference, ACV’s leadership provided updates on the progress of key projects. The T3 Terminal project at Tan Son Nhat International Airport has completed 60% of its volume, with the rough work 100% finished. ACV is committed to completing the project ahead of the government’s deadline of April 30, 2025. For the Component 3 project of the Long Thanh International Airport Phase 1, packages have been implemented synchronously, and some items are ahead of schedule.

Additionally, investment procedures are being carried out for upcoming projects, including the T2 Terminal at Cat Bi International Airport, the T2 Terminal at Dong Hoi Airport, the upgrade project at Ca Mau Airport, and the repair project for the runway at Vinh and Lien Khuong International Airports.

At the same time, ACV is accelerating digital transformation across various fields, including the implementation of digital transformation projects at ACV and airports such as the automatic toll collection project at airports, the A-CDM project, the application of CCCD chips, VneID Level 2, and biometric technology for passengers, and the ACV self-Services system (kiosk check-in, self bag drop, ABGS) for shared use.

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