Vietnam Airlines Accelerates Plans to Launch Dedicated Cargo Airline

As the aviation industry experiences a strong post-pandemic recovery, Vietnam Airlines—the national flag carrier—has officially announced its strategic plan to expand into the air cargo sector. This move is seen as a strategic step to align with global logistics trends and diversify revenue streams in an increasingly competitive market landscape.

Aiming to Launch a Dedicated Cargo Airline

At the 2025 Annual General Meeting of Shareholders, Mr. Lê Hồng Hà, CEO of Vietnam Airlines, announced that the carrier is planning to convert its fleet of A321 aircraft into dedicated freighters. The modified aircraft are expected to begin operations on regional routes by Q4 2025, laying the groundwork for the official establishment of a standalone cargo airline by 2026.

This marks a significant strategic shift for Vietnam Airlines, as the air logistics sector faces mounting pressures from changing tariff policies, fuel price volatility, and global geopolitical tensions.

Positive Financial Outlook in Q2/2025

Vietnam Airlines reported strong business performance in the second quarter of 2025:

• International passenger and cargo transport accounted for 65% of total revenue, reaching VND 22,152 billion.
• Pre-tax profit for Q2 hit VND 1,000 billion, bringing total profit for the first half of the year to over VND 4,000 billion.

These figures reflect a clear recovery in international flight operations—the airline’s core business segment—despite ongoing market uncertainties and potential challenges ahead.

Challenges Amid Global Volatility

Despite positive business results, Vietnam Airlines’ leadership has emphasized several ongoing risks:

• Fuel price volatility: Jet fuel prices surged to USD 95 per barrel due to conflicts in the Middle East, far exceeding the average forecast of USD 83 per barrel.
• Geopolitical tensions: Conflicts have disrupted flight schedules—particularly to Europe—forcing the airline to adjust routes, resulting in longer flight times and higher operating costs.
• Aircraft and parts shortages: Global supply chain disruptions have led Vietnam Airlines to lease engines and replacement components to maintain operational readiness.

Air Cargo Logistics Strategy and Fleet Investment Roadmap

Mr. Đặng Ngọc Hòa, Chairman of the Board of Directors at Vietnam Airlines, announced a plan to purchase narrow-body aircraft.

In addition to the plan to convert its A321 fleet into freighters, Vietnam Airlines is currently implementing several key initiatives:

• Purchasing 50 narrow-body aircraft, with 14 scheduled for delivery by 2030 and 18 more between 2031 and 2032.
• By 2035, the airline will require at least 50 wide-body aircraft to both replace aging units and expand its current fleet.
• Investing in logistics hubs at Long Thành and Gia Bình airports to develop the cargo sector in parallel with passenger services.

Intensifying Market Competition

According to Mr. Đặng Ngọc Hòa, Chairman of the Board of Directors at Vietnam Airlines, the entry of new airlines and the rapid fleet expansion by competitors are making the market increasingly competitive. Currently, Vietnam Airlines competes with 52 international carriers operating in Vietnam on a daily basis.

However, the airline does not view this as a risk, but rather as a driving force for innovation. Vietnam Airlines has set the following strategic goals:

• Capture 50% of the domestic market share
• Expand aggressively into international markets
• Rank among the Top 2 airlines in Southeast Asia by scale
• Achieve international 5-star service standards

Smart Hub Aviation – A Trusted Partner in the Air Cargo Value Chain

As Vietnam Airlines accelerates its expansion into cargo transportation and invests in logistics hubs at key airports, Smart Hub Aviation (SHA) – acting as an air freight sales agent and integrated logistics center – serves as a strategic bridge, enabling businesses to seize these emerging opportunities.

In a time when the market is undergoing restructuring, SHA offers businesses comprehensive support through the following services:

• Consultation on route and airline selection, optimizing cost and delivery time.

• Cargo consolidation, deconsolidation, and warehousing at airport locations, with direct connections to major airlines – including Vietnam Airlines.

• Customs clearance support, including documentation, inspection coordination, and expedited release – particularly for urgent cargo, e-commerce shipments, and goods requiring inspection.

• Continuous updates on freight rates, market conditions, tax policies, and air logistics-related risk factors.

With deep industry expertise, modern logistics technology, and a broad international partner network, Smart Hub Aviation is committed to being your strategic companion through every shift in the air logistics landscape.

Liên hệ với chúng tôi:

• Hotline: +84 977 576 069
• Email: info@smarthub.com.vn
• Fanpage: Smart Hub Aviation