Vietnam's leading carriers posted high profits
Vietnam`s two biggest airlines reported strong growth in domestic and international markets on April 26, fueling profits and talk of expansion plans.
VietJet, the biggest private airline in the Southeast Asian nation, said it was adding routes to Japan, India and Australia as part of its strategy to become a global airline.
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VietJet said on Thursday it expected pre-tax profit to rise to VND5.8 trillion this year, up 9.4% from 2017. It also targeted a 20.5% rise in revenue to VND50.97 trillion from a year earlier.
Its state-owned rival, Vietnam Airlines, said on Thursday its pre-tax profit jumped 71% in the first quarter as growth on domestic and international routes exceeded its forecasts.
Pre-tax profit during the January-March quarter rose to VND1.46 trillion (US$64.13 million), the airline said in a statement, up from VND854 billion (US$37.1 million) in the same period a year earlier.
Vietnam Airlines said it carried five million passengers in the quarter, up 5% from the same period last year.
"Demand remains high in Northeast Asian markets (Japan, South Korea), together with the implementation of market-driven solutions in the condition of high fuel prices," the airline said, adding it will take delivery of its 12th Airbus A350 in the second quarter.
Vietnam Airlines could launch non-stop flights to the United States in 2019, Chief Executive Officer Duong Tri Thanh said in February, but it would struggle to be profitable on U.S. routes due to the lack of business travelers.
Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
In 2010-2016, the Vietnamese air transportation market has witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed Vietnam Civil Aviation Administration.
During the first 9 months of 2017, Vietnamese airports have served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from the US$18.4 billion recorded last year.
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