Vietnam's aviation industry is becoming increasingly polarised, with major carriers expanding their fleets while smaller airlines struggle to maintain operations.
A Bamboo Airways aircraft. (Photo: Quoc Nam).
Data from aviation tracking platform Planespotters, updated on September 1, shows that nine Vietnamese airlines currently own aircraft, but the gap between the market leaders and smaller operators has widened significantly.
Vietjet Air remains the country's largest airline with 107 aircraft, followed closely by Vietnam Airlines with 97. Together, the two carriers dominate Vietnam's commercial aviation market.
Sun PhuQuoc Airways, which launched commercial operations in October 2025, has rapidly expanded to a fleet of 16 aircraft, making it the third-largest airline by fleet size. The pace of growth is unusual for a newly established carrier.
By contrast, Bamboo Airways has undergone a dramatic contraction. After reaching a peak fleet of 44 aircraft in 2022, the airline reduced its fleet from eight aircraft at the beginning of 2026 to three by the end of July. By the end of August, only a single Airbus A321-200 remained in operation.
Another niche operator, business aviation carrier Sun Air, is also operating with just one aircraft.
According to the Civil Aviation Authority of Vietnam, the country's registered fleet stood at 280 aircraft by mid-July 2026, including 252 fixed-wing aircraft and 28 helicopters, an increase of 18 aircraft compared with 2025.
Among commercial airlines, Vietjet operated 104 aircraft, Vietnam Airlines 96, Sun PhuQuoc Airways 10, Bamboo Airways five and Vietravel Airlines four.
Industry recovery remains uneven
Before the Covid-19 pandemic, Vietnam's aviation market was one of the fastest-growing in Asia. In 2019, airlines collectively operated 229 aircraft.
At that time, Vietnam Airlines and its subsidiary VASCO operated 105 aircraft, Vietjet had 80, Jetstar Pacific 18 and Bamboo Airways, which had entered the market just over a year earlier, already operated 22 aircraft.
The pandemic caused an unprecedented collapse in travel demand, forcing airlines to cut costs and reduce fleet sizes. Vietnam Airlines announced plans to sell 11 Airbus A321CEO aircraft in 2021 and delayed deliveries of nine new aircraft.
As travel demand recovered, fleet expansion resumed but at different speeds across the industry. Vietnam Airlines returned to operating 94 aircraft, while Vietjet rebuilt its fleet to 77 aircraft during the early recovery period.
The industry faced another challenge in 2024 when global shortages of Pratt & Whitney engines affected Airbus A321neo aircraft.
According to aviation authorities, the number of aircraft listed under Vietnamese Air Operator Certificates fell to 195 by mid-2026, down by 36 aircraft from a year earlier. The average number of aircraft actually in service was only about 167.
At that stage, Vietnam Airlines operated 96 aircraft, Vietjet 85, Pacific Airlines three, Bamboo Airways seven and Vietravel Airlines three.
Bamboo Airways has experienced the most dramatic changes. From 22 aircraft in 2019, its fleet shrank to seven by mid-2024. The airline subsequently streamlined operations, focusing exclusively on Airbus A320 and A321 aircraft from April 2024.
New entrants fuel competition
While some airlines have downsized, others are entering an expansion phase.
Vietravel Airlines began commercial operations in late 2021 with three aircraft. After T&T Group became a strategic shareholder in late 2024, the carrier launched a restructuring programme and started acquiring aircraft rather than relying primarily on leasing arrangements.
Sun PhuQuoc Airways represents an even newer growth story. Since launching in October 2025, the airline has expanded rapidly and aims to operate 20 aircraft in 2026 and 35 by 2027.
According to a 2026 report by brokerage firm MBS, competition among Vietnamese airlines is expected to intensify because fleet growth is outpacing passenger growth.
With fierce competition in the domestic market, major carriers such as Vietnam Airlines and Vietjet are increasingly focusing on international routes, which generally offer higher profit margins. Both airlines are opening new services to overseas destinations in an effort to expand market share.
Passenger growth continues
Despite competitive pressures, demand for air travel continues to recover.
The latest figures from the Civil Aviation Authority of Vietnam show that airports nationwide handled more than 76 million passengers during the first seven months of the year, an increase of 7 per cent compared with the same period last year.
International passenger traffic reached nearly 30 million, up more than 11 per cent, while domestic traffic exceeded 46 million, an increase of more than 4 per cent.
In July alone, Vietnamese airlines carried more than five million passengers, up more than 3 per cent from the previous month. International traffic increased by 2 per cent, while domestic traffic rose by more than 4 per cent.
The aviation authority expects the country's airports to handle approximately 94 million passengers this year, representing growth of 13 per cent compared with 2025.