Aviation sector – In-depth – [NONRATED] – Turnaround year

In 1Q24, VJC and HVN’s transportation revenue went up despite negative air passenger growth, which resulted from (1) Vietnamese airlines’ expansion to the international market and (2) higher fares due to eased competition and capacity shortage. In 2H24F, with the shift to the growing international segment of airlines due to limited capacity, we expect the domestic market to weaken but with increasing demand for international travel, the airlines’ business results in 2H24F continue to improve and contribute to a turnaround year.