Despite sharp increase in fuel prices and weak recovery in the international market, Vietnam’s aviation industry still achieved an impressive recovery and reduced losses significantly in the second quarter of 2022, according to the latest report of Vietnam Airlines.
Photo for illustration. (Source: nhandan.com.vn)
Vietnam’s aviation industry has made an impressive recovery thanks to the strong growth of domestic passengers in recent years.
Specifically, the loss of the aviation industry in the second quarter of 2022 decreased compared to the first quarter of 2022. In addition, compared to the same period in 2021, Vietnam Airlines’ loss decreased by more than 44% and stopped at 2.243 trillion VND. The above positive recovery sign was mainly due to the strong growth of the domestic aviation market.
According to the Vietnam National Administration of Tourism, in the first half of 2022, domestic tourist arrivals reached about 60.8 million, an increase of 99% over the same period last year.
The number of arrivals via airports in the first 6 months of the year reached 40.7 million passengers, a year-on-year increase of 56.8%. Vietnam’s airlines transported 20.1 million passengers, a year-on-year rise of 56.1%.
Contrary to the domestic market, the international market saw modest recovery. In the first half, international tourist market reached about 12% of the pre-pandemic level due to entry barriers limiting passenger travel demand. Recently, Vietnam Airlines has resumed 35 international routes, equal to 53% compared to 2019. The national flag carrier has not been able to reopen flights to China, Myanmar and Russia due to travel restrictions from the authorities or political tension.
During the peak summer season of July 2022, Vietnam Airlines recorded a profit for the first time after many months of reporting losses. Domestic flights in the summer peak season are expected to last until August 2022, bringing great cash flow to the airline.