CAAV cited a report by the International Air Transport Association (IATA) that says the global aviation market will recover by the end of this year.

Asia Pacific, the region which has seen the slowest recovery, may gain profit of $1.1 billion in 2024. IATA predicted that global airlines would obtain a record high revenue of $964 billion, of which passenger transport may reach $717 billion, an increase of 12 percent over 2023.

In Vietnam, the domestic market has begun witnessing growth compared with pre-Covid months, while international routes are on the path of recovery.

Regarding passenger transport by air in 2024, the total number of passengers may reach 84.2 million, up 15 percent over 2023 and 6 percent over 2019. 

This includes 41.5 million domestic passengers, up 3.3 percent over 2023, and 11 percent over 2019, and 42.7 million international passengers, up 15.8 and 6.4 percent, respectively.

While passenger transport has begun increasing, cargo transport has recovered more slowly with predicted volume of 1.16 million tons this year. The figure is up 8.5 percent in comparison with 2023, or 92.2 percent of 2019.

Vietnam’s air carriers plan to transport 61 million passengers this year, up 9.3 percent over 2023 and 10.9 percent over 2019, including 41.5 million domestic passengers and 19.5 million international passengers.

The optimism about the aviation market comes from new policies to develop tourism and new international routes. However, challenges still exist which may threaten the development of the aviation market.

The risks include inflation and exchange rate increases, tightened monetary policy, high interest rates, disadvantageous air fuel prices, global conflicts, and Pratt & Whitney’s airplane engine recall and maintenance.

CAAV said in order to support Vietnam’s airlines, the agency will propose reductions of fees and charges until the end of 2024, and an interest rate subsidy to enterprises in the aviation industry.

CAAV estimated that 77 million passengers were transported in 2023, up 34.5 percent over 2022.

Ngoc Ha