Vietnamese aviation authorities reported a significant rebound in international travel, with a 44.3% increase in international passengers compared to 2023.
Mr. Dinh Viet Thang, Director of the Civil Aviation Authority of Vietnam, affirmed the industry’s positive development at the Ministry of Transport’s conference on July 3rd, evaluating the first six months of 2024.
Mr. Dinh Viet Thang, Director of the Civil Aviation Authority of Vietnam. Photo: Ta Hai
Despite this good news, the domestic market experienced a setback, with a 19.4% decrease in passengers compared to the same period last year. This setback is attributed to a shortage of aircraft, which has forced Vietnamese airlines to reduce their domestic flight offerings.
Le Hong Ha, CEO of Vietnam Airlines, shared that they currently have 12 A321NEO planes and 2 A350 planes grounded due to engine recalls by manufacturers Pratt & Whitney and RollRoyce, respectively.
To mitigate this challenge, Vietnam Airlines has implemented several solutions, including wet leasing four planes for the peak season, operating night flights to offer lower fares, and expanding their international flight network.
Mr. Thang assured that the Civil Aviation Authority will continue to direct relevant units and airlines to strive for a supply no lower than that of 2023. Suggested solutions include reducing turn-around time, optimizing daily aircraft utilization, and increasing flights after 10 PM.
The authority will also closely monitor the operations and aircraft fleet of airlines, especially those undergoing restructuring, such as Bamboo Airways and Pacific Airlines, to ensure safe and secure operations and protect passengers’ rights.
Mr. Nguyen Van Thang, the Minister of Transport, instructed relevant units to enhance infrastructure improvements and coordinate with local authorities to ensure sufficient transportation options for passengers, especially during peak travel seasons like summer, the September 2nd holiday, New Year’s Day, and the Lunar New Year holiday in 2025.
Additionally, the Minister ordered stricter inspections and controls over airfare pricing to prevent any violations and tight management of slot allocation for airlines.
International Flights Surge, Domestic Flights Drop by Nearly 20%
According to Mr. Dinh Viet Thang, in the first six months of 2024, the total passenger market reached an estimated 38.1 million passengers, a 6.7% increase compared to the same period in 2023. International passengers accounted for 21.1 million, a significant rise of 44.3% from 2023 and a 3% increase from pre-pandemic levels in 2019. However, domestic passengers totaled 17 million, a 19.4% decrease compared to the first six months of 2023.
As of the Summer 2024 flight schedule, 63 foreign airlines and 4 Vietnamese airlines have fully restored their international flight networks to pre-COVID-19 levels and continue to expand into new markets in Central Asia, India, and Australia.
Notably, the Chinese market is showing signs of recovery, expected to reach 2.5 million passengers in the first half of the year, more than triple the number from 2023 and 62% of pre-pandemic levels in 2019. It is now the second-largest international market as of the second quarter of 2024, while the South Korean market remains the most significant, projected to reach 5.3 million passengers during this period.
“The international aviation market has fully recovered and shown slight growth (3%) compared to 2019, before the COVID-19 pandemic,” said Mr. Thang. He added that Vietnamese airlines hold 44% of the international passenger market share, with an average seat utilization rate of over 77%.
The aviation industry aims to serve approximately 78.3 million passengers (34.8 million domestic and 43.5 million international) and 1.21 million tons of cargo in 2024, representing a 7.7% increase in passengers and a 13.4% increase in cargo compared to 2023.
