After a prolonged global aircraft supply shortage, Vietnamese airlines are embarking on a new phase of capacity expansion, focusing on adding aircraft to meet rising demand, especially during the peak summer season.

On 26/6, Vietnam Airlines received an Airbus A320 under a three-year lease agreement and expects to add an Airbus A321 in July. This fleet increase will provide the airline with nearly 23,000 additional seats each month for the domestic market, concentrating on key routes such as Hanoi - TP HCM and major tourist destinations like Da Nang, Nha Trang, Quy Nhon, and Hue.

Sun PhuQuoc Airways recently welcomed its 11th aircraft and anticipates receiving 15 more Airbus A320/A321 planes by the end of August, expanding its fleet to 26 aircraft in less than one year of operation.

Meanwhile, Vietjet maintains its expansion pace with 135 aircraft currently in operation and an order book of nearly 600 narrow-body and wide-body aircraft, further solidifying its position as one of the largest airlines in the region by fleet size.

Aircraft parked at Tan Son Nhat Airport (TP HCM). Photo: Quynh Tran

Beyond meeting short-term needs, Vietnamese airlines are also advancing their long-term expansion plans. In February, Vietnam Airlines signed an agreement to purchase 50 Boeing 737 MAX 8 aircraft, with deliveries scheduled for the 2030-2032 period. Vietjet has also diversified its investments with large orders from Airbus and an operational lease agreement for 10 Comac C909 aircraft.

The fleet expansion comes as the aviation industry previously faced significant aircraft shortages due to supply chain disruptions and widespread recalls of Pratt & Whitney engines. These issues forced many aircraft to be grounded, reducing the overall transport capacity of the industry.

Fuel cost pressures are also showing signs of easing. According to the International Air Transport Association (IATA), Jet A1 prices have fallen below 120 USD per barrel after a sharp increase caused by geopolitical tensions. Vietnam Airlines reported that the Platts price on 19/6 was 112,22 USD per barrel. With fuel accounting for approximately 30-40% of operating costs, this development helps airlines improve their capacity for operational expansion.

Passenger demand continues to be the primary market driver. The Civil Aviation Authority of Vietnam reported that in the first five months of the year, total passenger traffic through airports reached 54,6 million, an increase of more than 10% compared to the same period last year. International passengers accounted for 22,6 million, up more than 18%.

Vietnam is considered one of the fastest-growing aviation markets in the region, according to the Vietnam National Trade Handbook published by the US Department of Commerce.

In the long term, the master plan for national airport system development targets an average annual growth of 7,5-8,5% in passenger volume and 8,4-9,7% in cargo output. By 2030, the airport system is expected to serve approximately 278 million passengers and 4,1 million tons of cargo.

According to Dr. Nguyen Thien Tong, the simultaneous addition of aircraft by airlines aligns with the industry's recovery phase. However, he emphasized the need to monitor the supply-demand balance in the medium and long term.

He noted that while fleet expansion is necessary to meet rising demand, the aviation industry is capital-intensive with a long return on investment period. If capacity increases faster than demand growth, competitive pressures could intensify.

Nevertheless, a positive aspect is that most current orders are for new generation aircraft, which offer about 15-20% fuel savings compared to older models. This improves operational efficiency. "A new fleet helps reduce costs and enhance long-term operational efficiency," he said.

Dr. Tong concluded that with increasing international demand, expanding aviation infrastructure, and significant market potential, the fleet expansion race reflects expectations for a new growth cycle in the industry. However, investment efficiency will depend on the ability to balance the pace of capacity expansion with the market's actual absorption capacity in the coming years.

Thi Ha - Anh Tu