Aviation sector competition set to intensify in 2026

With the launch of a new airline and the recovery made by a struggling one, Vietnamese air travel is set to see more competition this year, analysts said.

Already this year Sun PhuQuoc Airways, which began flying last November, and budget carrier Vietjet Air have received new aircraft.

SPA now has six jets and Vietjet has over 100, of which more than 20 were added in the last month.

The newcomer has also been ramping up personnel recruitment since its launch.

Struggling Bamboo Airways was bought back by property developer FLC Group last September and has since been expanding its fleet.

Analysts at securities firm MBS expect Vietnamese airlines’ fleet expansion to outpace passenger growth in 2026.

« The entry of Sun PhuQuoc and the return of Bamboo Airways after restructuring will put pressure on other companies in the sector. »

The competition would be especially fierce between the three smaller airlines, Sun PhuQuoc, Bamboo and Vietravel Airlines, it added.

SPA plans to expand its fleet to 20 aircraft and start operating international flights as early as this year.

Bamboo has eight planes and aims to add eight to 10 more every year until 2030 and expand its network.

Most of its current flights are between Hanoi, Da Nang, Ho Chi Minh City and a few other tourist destinations.

Vietravel Airlines, backed by conglomerate T&T Group, only has three aircraft despite earlier plans to have 10 by the end of last year.

MBS said the growing competition is unlikely to affect Vietjet and Vietnam Airlines, who account for 90% of the aviation market, as they mostly focus on expanding their international networks.

In the last two years Vietjet added services to Northeast Asia, India and Australia while Vietnam Airlines launched long-haul flights to Europe.

But the two have to compete with foreign airlines, many of which began flying to Vietnam last year, and not just on prices but also service quality, the Civil Aviation Authority of Vietnam warned.

Some 28 aircraft, mostly belonging to the two, are under maintenance with engine issues.

Geopolitical factors impacting fuel prices and international route networks, and flight delays due to abnormal weather and traffic congestion at major airports are also likely to pose challenges to Vietnamese airlines this year, the agency said.

Analysts said the number of passengers grew last year and is expected to again do so this year. Data from the aviation authority shows the number last year was 83.5 million, including 44.6 million international passengers.

Sheldon Hee, regional vice president of Asia-Pacific at the International Air Transport Association, said over the last decade Vietnam has ranked among the 10 fastest growing aviation markets in the region.

But Vietnamese airlines still have plenty of room for growth as the country only has direct flights to around 30 countries while Thailand and Singapore are connected with over 50, he said.

« The number of international visitors to Vietnam is rising, reflecting the country’s growing appeal. Demand among Vietnamese travelers for overseas travel is also increasing. »

By Anh Tu – VnExpress.net – January 10, 2026