return icon Vietnamnet.vn

Airlines busier, but still incurring losses

Despite the increase in the number of passengers, air carriers are still incurring losses due to the fuel price increase.

Head of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang told a conference on June 28 that the number of air passengers is on the rise and airports have become bustling again.

In the first six months in 2022, 205,000 flights were organized, including 66,700 transit flights, up 28 percent year on year, with a total of 43.4 million passengers, up by 65.5 percent. 

The number of passengers carried by Vietnam’s airlines was 21.4 million, including 20.8 million local passengers, up by 62.4 and 57.3 percent, respectively.

However, the restoration of international air routes is still modest. The number of flights between Vietnam and South Korea remains low and South Korea has set complicated requirements on entries.

For China, there are only two flights a week because of this country’s Zero-covid policy. The other markets such as Taiwan and Japan are opening step by step. 

Thang said that Vietnam hopes to resume air routes to Taiwan, Japan and South Korea, and increase flights to China in the last six months of the year.

Vietnam Airlines’ deputy CEO Trinh Hong Quang said the recovery of international air routes was below expectations.

A report showed that foreign travelers to Vietnam in H1/2022 were nearly 2.4 million, or 11 percent of H1/2019. 

Meanwhile, the rise in air fuel price has put airlines into a difficult situation, particularly Vietnam Airlines, Quang said. If the fuel price increases by $1/barrel, the airline’s expenses on fuel will increase by VND12 billion.

In 2019, air fuel accounted for 28-29 percent of Vietnam Airlines’ total expenses. At present, it is 38-40 percent. If the fuel price stands at $150-156 per barrel until the end of 2022, the additional expenses would be VND8 trillion.

CAAV’s Thang said because of the fuel price hike, air carriers’ revenue cannot make up for operation costs. Domestic airlines may incur a loss of VND100 billion each month.

US$1 = VND23,000

Vu Diep

MORE NEWS

Hot TikTokers bridge ethnic cultures

Several Tiktokers from the mountainous areas of Vietnam have attracted an increasing number of followers with short videos featuring their daily lives and unique ethnic cultures.

Land irregularities bring down multiple officials

Many high-ranking officials have been disciplined, dismissed and even prosecuted for land irregularities.

Why is air quality in Vietnam getting worse?

Dr Hoang Duong Tung, Chairman of the Vietnam Clean Air Partnership and former vice-general director of the Vietnam Environmental Administration, has said that improving air quality must not be delayed.

Hanoi hosts first UK-Vietnam Migration Dialogue

Matthew Rycroft, permanent under-secretary of the UK Home Office, and Deputy Minister of Public Security Sen. Lieut. Gen. Luong Tam Quang co-chaired a UK-Vietnam migration dialogue in Hanoi on August 15.

Diversity & Inclusion - The core factor bringing Stavian Group to the world

Multinational corporations face difficulties building corporate culture due to clashes between different cultures. Stavian Group builds its corporate culture following DEI principles to tackle this problem.

Vietnam, Qatar mutually waive visas for diplomatic, official passport holders

Vietnam and Qatar signed an agreement on visa exemption for their diplomatic and official passport holders on August 15.

Minor quake hits Dien Bien again

An earthquake measuring 2.6 on the Richter scale has been detected in the northern upland province of Dien Bien yesterday morning, August 15.

Minh Khac represents Vietnam at Man of The Year 2022

Nguyen Minh Khac, the runner-up of The Next Gentle Man contest, arrived in the Indonesian province of Bali on August 15 to compete in the Man Of The Year 2022 pageant.

Mexico is largest consumer of Vietnamese pangasius

Vietnam exported pangasius products worth US$73.5 million to Mexico during the seven-month period, up 73% over the same period last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Vietnam Airlines launches PressReader for in-flight reading

Since August 15, passengers of Vietnam Airlines can enjoy Vietnamese and international publications through its new free service, PressReader.

Vietnam's central bank reduces intervention on open market operations

The open market operations (OMO) have been more stable this month after the State Bank of Vietnam (SBV) reduced its intervention in the market.

Transport Ministry to submit US$58bil. north-south high-speed railway project to Politburo

According to the Ministry of Transport (MOT), the North-South high-speed railway project is expected to be submitted to the Politburo in September.

Stamp collection featuring famous Vietnamese waterfalls released

A set of stamps featuring famous waterfalls in Vietnam was launched by the Vietnam Post Corporation on August 15 aiming to promote the country’s scenic landscapes among the public.

Torrential rain causes traffic chaos, flooding in HCMC

The Hydrology Meteorology Forecasting Station of the Southern region informed that Ho Chi Minh City experienced extreme rainfalls along with blustery winds this afternoon.

Trial opens for 13 former leaders of Binh Duong province in land-use rule violation case

The Hanoi People’s Court opened a trial on August 15 for 28 individuals in a case of violations of land management and use regulations in the southern province of Binh Duong, causing losses worth trillions of Vietnam dong to the State budget.
back_to_top