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VietJet Air - Strategic Analysis and Outlook Report (2026)
AviationOutlook
December 23, 2025 • Estimated Reading Time: 15 minutes
VietJet Aviation Joint Stock Company, widely recognized as Vietjet or VietJet Air, has emerged as Vietnam’s largest private carrier and a formidable force in Southeast Asian aviation.
As the industry enters a transformative period marked by post-pandemic recovery and ambitious expansion plans, Vietjet stands at a critical inflection point. This analysis examines the airline’s current performance, strategic initiatives, and future trajectory through 2026 and beyond.
Table of Contents
Image source: wikipedia.org
Financial Performance: Strong Recovery Trajectory Through 2025
Vietjet’s financial results for 2024 and the first three quarters of 2025 demonstrate a remarkable recovery from the pandemic’s impact.
According to audited financial statements, the airline achieved record aviation revenue of VND 71.545 trillion (approximately US$2.8 billion) in 2024, representing a 33% year-over-year increase. After-tax profit exceeded VND 1.301 trillion (approximately US$51.6 million), marking an extraordinary 697% year-over-year growth.
The positive momentum continued into 2025. For the first nine months of 2025, Vietjet reported consolidated revenue of VND 52.769 trillion (approximately US$2 billion), with pre-tax profit reaching VND 2.051 trillion (approximately US$77.89 million), representing a 17% year-over-year increase.
Notably, the airline achieved 97% of its annual plan by the end of Q3 2025, demonstrating strong execution against strategic targets.
Key Financial Metrics (Q1-Q3 2025)
Metric | Value | Year-over-Year Change |
|---|---|---|
Total Revenue | VND 52.769 trillion (~US$2 billion) | +17% |
Aviation Revenue | VND 52.329 trillion (~US$1.98 billion) | +28% |
Pre-tax Profit | VND 2.051 trillion (~US$77.89 million) | +17% |
Ancillary Revenue | VND 6.893 trillion (~US$261.8 million) | +19% |
Ancillary as % of Air Revenue | 41% | - |
One particularly noteworthy aspect of Vietjet’s business model is its ancillary revenue performance.
Ancillary revenue reached VND 6.893 trillion (approximately US$261.8 million) in the first nine months of 2025, accounting for 41% of total air revenue with a 19% year-over-year growth.
This high proportion of ancillary revenue reflects the airline’s successful implementation of a low-cost carrier model with diversified revenue streams, including baggage fees, seat selection, onboard services, and travel-related products.
Image source: vietjetair.com
Operational Excellence and Network Performance
Vietjet’s operational metrics underscore its competitive positioning within the Southeast Asian aviation market.
As of September 30, 2025, the airline operated an extensive network of 219 routes comprising 169 international and 50 domestic connections. The airline transported 21.5 million passengers during the first nine months of 2025, with a fleet of 98 aircraft.
Operational efficiency remains a key strength.
The airline maintained a seat utilization rate of 86%, while technical reliability reached 99.72%, placing Vietjet among the highest performers in the region.
These metrics demonstrate the airline’s ability to maximize asset utilization while maintaining operational integrity, a balance that proves particularly challenging for low-cost carriers operating in competitive markets.
Operational Highlights (as of September 30, 2025):
• Total Routes: 219 (169 international, 50 domestic)
• Passengers Transported: 21.5 million (9-month period)
• Fleet Size: 98 aircraft
• Seat Utilization Rate: 86%
• Technical Reliability: 99.72%
• Tax Contribution: VND 7.342 trillion (~US$278.86 million)
Aggressive Fleet Expansion Strategy
Vietjet’s fleet expansion strategy represents one of the most ambitious growth initiatives in Asian aviation. The airline is currently executing a multi-pronged approach to fleet development that will significantly enhance its operational capacity through 2030 and beyond.
In October 2025, Vietjet finalized an order for 100 Airbus A321neo aircraft during Vietnamese General Secretary To Lam’s visit to the United Kingdom, marking the largest single aircraft order of 2025. This order, added to the airline’s existing commitments, brings Vietjet’s total orders from Airbus and Boeing to more than 400 new aircraft through 2030.
Earlier in 2025, the airline also placed an order for 20 additional Airbus A330neo widebody aircraft in May to support long-haul international expansion.
Image source: vietjetair.com
The immediate impact of this expansion strategy became evident in December 2025, when Vietjet welcomed 22 new aircraft during the year-end season, marking the airline’s largest fleet expansion in a single month.
This delivery included nine Boeing aircraft, seven widebody jets, and six Airbus A321neo aircraft. The addition of these aircraft positions Vietjet to meet rising travel demand during peak seasons while supporting its long-term network expansion objectives.
Fleet Expansion Timeline
Period | Aircraft Additions | Significance |
|---|---|---|
December 2025 | 22 aircraft (9 Boeing, 7 widebody, 6 A321neo) | Largest single-month expansion |
Through 2030 | 400+ aircraft (Airbus & Boeing orders) | Long-term capacity growth |
A321neo Order | 100 aircraft | Largest single order of 2025 |
A330neo Order | 20 widebody aircraft | Long-haul capability enhancement |
Strategic International Expansion
Vietjet’s international expansion strategy reflects a calculated approach to capturing growth opportunities across multiple geographic markets. The airline is actively developing its long-haul capabilities while simultaneously strengthening regional connectivity throughout Asia.
According to strategic planning documents, Vietjet plans to open new routes to Europe and expand services across key markets, including Australia, India, China, South Korea, and Japan.
The airline has already introduced several important international connections in 2025, including new routes to Kuala Lumpur from Hanoi and expanded services connecting Vietnam with Malaysia, with a new route to Da Nang launched in October 2025.
The addition of widebody A330neo aircraft will prove particularly significant for long-haul operations. These aircraft enable Vietjet to serve distant markets more efficiently while offering enhanced passenger comfort on extended flights.
As of 2025, Vietjet operates 145 routes, including 101 international services, with future strategy aimed at strengthening its position as a regional powerhouse.
Image source: vietjetair.com
Long Thanh Airport: A Strategic Infrastructure Advantage
Vietjet’s early positioning at Long Thanh International Airport represents a significant strategic advantage. The airline operated its first flight to Long Thanh International Airport on December 19, 2025, using an A321neo aircraft, marking the beginning of operations at Vietnam’s most ambitious aviation infrastructure project.
Beyond flight operations, Vietjet has made substantial infrastructure investments at Long Thanh.
The airline topped out its aircraft maintenance hangar in December 2025, just four months after construction commenced in August 2025. This Aircraft Maintenance and Engineering Center, spanning 8.4 hectares, will provide international-standard maintenance capabilities, reducing dependency on overseas maintenance providers and improving operational efficiency.
Long Thanh International Airport, expected to reach full operational capacity in 2026, will serve as a game-changer for Vietnamese aviation. The facility is designed to handle flights from Europe, India, the Middle East, and North America, with plans to expand services to Northeast Asia in 2027.
For Vietjet, early establishment at Long Thanh provides preferential positioning, maintenance infrastructure ownership, and the ability to capitalize on the airport’s growth trajectory.
Market Context and Competitive Environment
Vietnam’s aviation market provides a favorable backdrop for Vietjet’s growth strategy. According to industry analysis, Vietnam’s aviation sector handled 109 million passengers in 2024, with international passenger traffic surging by 26% while domestic traffic declined by 15%. This shift toward international travel aligns well with Vietjet’s expansion strategy.
The Civil Aviation Authority of Vietnam has set ambitious targets for 2026, projecting 95 million passengers and 1.6 million tonnes of cargo, representing 13% and 15% growth, respectively, compared to 2025.
Vietnam is positioned as Southeast Asia’s fastest-growing aviation market, with annual passenger traffic projected to rise by 8.1% between 2025 and 2030, according to Boeing’s Commercial Market Outlook.
Vietjet and Vietnam Airlines together dominate the market, accounting for more than 84% of domestic operations.
As of early 2024, Vietjet held a 42.8% market share, slightly ahead of Vietnam Airlines’ 42.2%.
Other competitors include Bamboo Airways, which is undergoing recovery and restructuring, Pacific Airlines, VASCO, and Vietravel Airlines, which recently secured strategic investment from T&T Group.
Carrier | Market Share | Position |
|---|---|---|
Vietjet Air | 42.8% | Market Leader |
Vietnam Airlines | 42.2% | Close Second |
Other Carriers | 15.0% | Fragmented |
Vietjet’s financial position reflects the successful execution of its post-pandemic recovery strategy.
As of June 30, 2025, Vietjet’s total assets amounted to over VND 112.33 trillion (approximately US$4.28 billion), with a debt-to-equity ratio of 1.76 and a liquidity ratio of 1.44, indicating strong financial health within the aviation sector.
The Board of Directors has demonstrated confidence in the company’s future prospects by approving a 20% stock dividend, involving the issuance of more than 118.3 million shares with a total nominal value exceeding VND 1.183 trillion (approximately US$44.93 million).
This decision reflects impressive business results and a robust financial position while ensuring long-term benefits for shareholders.
For the first half of 2025, Vietjet achieved 78% of its full-year separate pre-tax profit target and 75% of its consolidated pre-tax profit target, indicating strong performance that exceeded mid-year benchmarks.
Sustainability Initiatives and Corporate Recognition
Vietjet has positioned sustainability as a core component of its long-term strategy. The airline is investing in sustainable aviation fuel (SAF) development and expanding high-quality workforce training at the Vietjet Aviation Academy, demonstrating commitment to environmental responsibility and human capital development.
The airline’s efforts have garnered significant recognition. Vietjet received the 2025 Sustainability Award from AirlineRatings, acknowledging its environmental and operational sustainability initiatives.
The company has also been named one of Asia’s Best Workplaces and listed in Forbes’ Top 50 Best Public Companies in Vietnam, affirming its international standing.
Additionally, Vietjet was honored among ASEAN’s most valuable airline brands, cementing its leadership position within Vietnam’s aviation industry.
Challenges and Risk Factors
Despite its strong performance trajectory, Vietjet faces several challenges common to rapidly expanding airlines.
Airport capacity constraints remain a persistent issue, particularly at major hubs such as Tan Son Nhat International Airport in Ho Chi Minh City and Noi Bai International Airport in Hanoi. These bottlenecks can result in congestion and flight delays, affecting operational efficiency and customer satisfaction.
The aviation industry globally faces workforce shortages, particularly in specialized roles such as pilots, maintenance technicians, and digital operations specialists. As Vietjet expands its fleet and network, recruiting and retaining qualified personnel will prove critical to maintaining operational standards.
Financial pressures associated with fleet modernization, technology investment, and cybersecurity implementation represent ongoing challenges. While Vietjet has demonstrated strong profitability in recent quarters, the capital-intensive nature of aircraft acquisition and the thin operating margins characteristic of low-cost carriers require disciplined financial management.
Competitive intensity within Vietnam’s aviation market continues to increase, with existing carriers expanding operations and potential new entrants, including a proposed full-service carrier expected to launch in 2026 with an initial fleet of six aircraft. This evolving competitive dynamic will require Vietjet to maintain service quality while defending its cost advantage.
Outlook for 2026 and Beyond
Vietjet’s outlook for 2026 and subsequent years appears positive, supported by multiple favorable factors. The airline expects strong sustained growth in 2026, driven by positive market trends, relatively low fuel prices, and a solid technological and financial foundation.
The delivery schedule for new aircraft will significantly enhance capacity throughout 2026 and beyond, enabling Vietjet to pursue aggressive network expansion while upgrading its fleet to more fuel-efficient models. The A321neo and A330neo aircraft offer improved operating economics, extended range capabilities, and reduced environmental impact compared to previous generation aircraft.
Strategic positioning at Long Thanh International Airport provides Vietjet with a platform for long-term growth as the facility expands its operations and international connectivity. The airline’s investment in maintenance infrastructure at Long Thanh will generate additional revenue streams through potential third-party maintenance services while reducing operational costs.
International expansion, particularly into European and long-haul markets, represents a significant growth opportunity. The widebody A330neo fleet enables Vietjet to compete effectively in markets previously dominated by full-service carriers, potentially capturing price-sensitive demand on long-haul routes while maintaining its low-cost carrier positioning.
The continued recovery of international travel demand, combined with Vietnam’s strategic location in Southeast Asia and favorable economic fundamentals, supports optimistic passenger growth projections. Vietnam’s rising middle class, improved visa policies, and growing tourism sector provide structural support for sustained aviation demand growth.
Key Growth Drivers for 2026 and Beyond:
✓ Fleet expansion of 400+ aircraft through 2030
✓ Strategic positioning at Long Thanh International Airport
✓ International route expansion to Europe, Australia, and long-haul markets
✓ Widebody capability for enhanced product offering
✓ Strong ancillary revenue model (41% of air revenue)
✓ Market leadership position in fastest-growing Southeast Asian market
✓ Robust financial foundation with improving profitability
My Final Thoughts
VietJet Air has successfully transitioned from pandemic recovery to aggressive expansion mode, positioning itself as a dominant force in Southeast Asian aviation.
The airline’s strong financial performance through 2025, massive fleet expansion commitments, strategic infrastructure investments, and calculated international growth strategy collectively support a positive outlook for 2026 and beyond.
While challenges related to capacity constraints, workforce availability, and competitive intensity persist, Vietjet’s financial strength, fleet modernization program, and favorable market conditions provide a solid foundation for continued growth.
As Vietnam’s aviation market continues its trajectory toward becoming Southeast Asia’s fastest-growing sector, Vietjet appears well-positioned to capitalize on these opportunities.
It might even do so while maintaining its leadership position in the domestic market and expanding its international footprint significantly through 2030.
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