Vietnam’s air travel industry has been raking in hundreds of billions of dong in profits this year so far.
Vietnam’s growing wealth has led to a boom in air travel, according to a Zing article. Local tourists are traveling more and spending more during their trips and Vietnam’s air carriers are reaping the benefits. Budget airline Jetstar Pacific reported an impressive profit of VND523 billion in the first seven months this year compared with the same period last year. Jetstar’s revenue has grown 35% year-on-year, partly thanks to a 1% decrease in operating costs.
Vietnam Airlines (VNA), the national air carrier, has also enjoyed satisfactory growth this year, with after-tax profits of VND309 billion during the second quarter alone, a four-fold boost compared to 2017. During the second quarter, VNA sold VND18.93 trillion worth in tickets, amounting to VND210 billion every day.
Similarly, low-cost airline VietJet Air reported a revenue of VND8.6 trillion in the second quarter, VND3.1 trillion more than the same period last year’. Combining the two quarters, VietJet raked in VND21 trillion in revenue with more than VND2 trillion in before-tax profits. Moving forward, CEO Nguyen Thi Phuong Thao plans to launch 21 new flight routes next year including 15 international and six domestic.
While the financial prospect for the three air travel giants looks optimistic through the end of the year, Zing reports in a separate article that they have all suggested an increase in air ticket price in the future. It’s unclear how much higher the price will be in the case of VietJet and VNA, but Jetstar wishes to slap a 25% increase on its airfare, citing rising fuel costs.
[Photo via Airgways]
