Vietnam Airlines, Vietjet, others expand fleets as travel demand rebounds

Overview

Vietnamese airlines are racing to expand their fleets as travel demand rebounds, with passenger traffic up over 10% in the first five months of 2026 and fuel costs easing. Vietnam Airlines (HVN), Vietjet (VJC), Vietravel Airlines, and Sun PhuQuoc Airways have all taken delivery of new aircraft or announced lease agreements. The expansion comes after industry-wide capacity constraints from supply chain disruptions and engine recalls, and positions the sector to meet long-term growth targets of 7.5-8.5% annual passenger growth under Vietnam’s airport master plan.

Key Facts

• Vietnam Airlines took delivery of an Airbus A320 under a three-year lease and expects an A321 in July, adding nearly 23,000 seats per month on domestic trunk routes.
• Vietravel Airlines received an A321 on Wednesday, operates four aircraft (three owned), and aims to add seven more in H2 2026 for peak summer travel.
• Sun PhuQuoc Airways took delivery of its 11th aircraft and expects 15 more A320/A321s by end-August, reaching 26 aircraft less than a year after launch.
• Vietjet operates 135 aircraft with orders for nearly 600 narrow-body and wide-body jets, including 10 Comac C909s under operating lease.
• Vietnam Airlines signed an agreement in February to purchase 50 Boeing 737 MAX 8 aircraft, deliveries 2030-2032.
• Jet A-1 fuel price has fallen below US$120/barrel, down from geopolitical highs, reducing a key cost that accounts for 30-40% of operating expenses.
• Vietnam’s airports handled 54.6 million passengers in Jan-May 2026, up over 10% YoY; international traffic reached 22.6 million, up over 18%.

What Happened

Vietnamese airlines are accelerating fleet expansion to meet surging travel demand. Vietnam Airlines (HVN) took delivery of an Airbus A320 under a three-year lease and expects an A321 in July, adding nearly 23,000 seats per month on domestic trunk routes like Hanoi-HCMC and tourist destinations. Vietravel Airlines received an A321 and plans to add seven more aircraft in H2 2026, while launching new routes including Hanoi-Buon Ma Thuot, HCMC-Shenzhen, and Hanoi-Macau. Sun PhuQuoc Airways, which began operations less than a year ago, took delivery of its 11th aircraft and expects 15 more by end-August, bringing its fleet to 26. Vietjet (VJC), with 135 aircraft currently, has orders for nearly 600 jets, including 10 Comac C909s. In February, Vietnam Airlines signed to purchase 50 Boeing 737 MAX 8s for delivery between 2030 and 2032.

The expansion follows a period of aircraft shortages due to supply chain disruptions and the Pratt & Whitney engine recall that grounded many planes. Fuel costs have eased, with Jet A-1 falling below US$120/barrel, supporting carriers’ ability to add capacity. Passenger demand remains strong: Vietnam’s airports handled 54.6 million passengers in the first five months of 2026, up over 10% YoY, with international traffic rising over 18% to 22.6 million.

Market Context

HVN closed at 23,000 VND (-0.86%) on June 26, 2026, with volume of 414,000 shares on HOSE. VJC closed at 139,500 VND (+0.07%) on the same day, with volume of 982,800 shares. The aviation sector is benefiting from a cyclical recovery in travel demand and easing cost pressures. Vietnam is regarded as one of the fastest-growing aviation markets in the region, with the national airport master plan targeting average annual passenger growth of 7.5-8.5% and cargo growth of 8.4-9.7% through 2030. The fleet expansion signals confidence in sustained demand growth, though near-term capacity additions may pressure yields.

Strategic Significance

The fleet expansion reflects a strategic bet on Vietnam’s long-term aviation growth, supported by rising middle-class travel and tourism. For HVN, the addition of narrow-body aircraft improves domestic capacity and route flexibility, while the Boeing 737 MAX order positions it for future fleet modernization. VJC’s massive order book reinforces its ambition to be a leading regional carrier, with the Comac C909 order diversifying its supply chain. The easing of fuel costs provides near-term margin relief, but the key driver remains passenger demand. The industry’s ability to absorb new capacity without eroding yields will be critical for profitability.

What to Watch

• Q2 2026 earnings reports from HVN and VJC for capacity utilization and yield trends.
• Delivery schedules for new aircraft, especially Sun PhuQuoc Airways’ 15 A320/A321s by end-August.
• Fuel price trajectory: Jet A-1 staying below US$120/barrel supports margin recovery.
• International route expansion: Vietravel Airlines’ new routes to Shenzhen and Macau could signal broader network growth.
• Regulatory updates on Vietnam’s airport infrastructure development under the master plan.