Illustrative image (Photo: VNA) Therecovery of the air industry in 2022-2026 will be attributed to looserrestrictions on air travel despite high daily COVID-19 case numbers andthe full reopening of tourism from March 15.
VietJetAir is expected to report profits from 2022, whereas Vietnam Airlines willfollow suit in 2024.
VCSCestimates that the total number of domestic flights in February has almost reachedpre-pandemic levels.
Thereopening in mid-March will give a fresh impetus to the industry, creatingmore flights.
Thesecurities firm believes there is a good chance that Vietnam will win tourismmarket share from other regional countries in the medium- and long-term,thanks to the quality of airline facilities and high vaccine coverage rates.
However,the possibility of higher oil prices continues to be a matter of concern forairlines as mounting fuel bills erode profitability.
“Brentoil prices are forecast to be 70 USD per barrel in 2022 and to floataround 65 USD per barrel between 2023 and 2025. Scenario analysis ofthe oil prices impact on Vietnam Airlines and VietJet Air shows that the twoairlines would experience considerable falls in valuation if oil priceshit over 100 USD per barrel in the next three years,” said VCSC.
VCSC estimatesthe two airlines' domestic flights will return to the pre-pandemic levelin 2023 and for international flights by 2026.
Accordingto the Civil Aviation Authority of Vietnam, total flights of allVietnamese airlines plunged to a record low of 1,311 in September 2021 dueto strict restrictions on air travel.
Thefigure soared to 25,220 in February 2022, thanks to the easing of air travelconstraints.
VCSCsaid air flights have been recovering in a V-shaped pattern since thefirst easing in October 2021./.
VNA
