The first Airbus A321 for Sun PhuQuoc Airways has officially landed in Vietnam, marking a significant leap forward for the airline just weeks after receiving its operating license. The initiative from the Sun Group, a major player in tourism, aims to launch ticket sales by October and commence flights in December, adhering to an ambitious timeline that reflects its commitment to growth.
With aspirations as lofty as the planes it operates, Sun PhuQuoc Airways plans to have eight A321 aircraft at its disposal by the end of the year. The airline is ramping up its recruitment efforts, securing pilots and cabin crew while lining up a credit facility with Vietcombank for the purchase of up to ten aircraft. Sun Group’s vision for the airline goes beyond mere transportation; it seeks to offer premium tourism experiences, with future destinations planned for China, Japan, and South Korea.
Adding to the excitement in Vietnam’s aviation landscape is the resurgence of Vietravel Airlines. After grappling with aircraft shortages and financial hurdles, the company has received a shot in the arm from T&T Group’s backing. Since late June, it has welcomed two new aircraft into its fleet and is on track to acquire more, aiming for a total of at least ten by year-end. This move aligns with a strategic pivot towards ownership rather than leasing. On top of this, Vietravel Airlines is also setting its sights on launching a dedicated cargo fleet as it ramps up its domestic services, contributing to a rejuvenated tourism and aviation market in the post-Covid era.
Vietnam’s tourism scene is on fire, with international arrivals surpassing 12.2 million in just the first seven months of 2025—a remarkable 23% increase year-on-year and a staggering 25% above pre-pandemic levels in 2019. This growth is bolstered by the government’s recent decision to waive visas for visitors from 12 European countries, an invite that has opened the gates of opportunity.
Major upgrades in aviation infrastructure, including the construction of the Long Thanh International Airport and the expansion of Phu Quoc International Airport, only add to the momentum. These developments are creating a fertile environment for new carriers while benefiting established ones.
The resurgence isn’t just limited to newcomers. Vietnam Airlines reported record profits exceeding VND6.68 trillion (US$254 million) for the first half of 2025, more than doubling its annual figures from the last three years prior to the pandemic. Budget airline Vietjet also soared, achieving a 65% profit increase to VND1.6 trillion—the highest since the pandemic began. Meanwhile, Bamboo Airways, which began operating in 2019, has wrestled with post-restructuring challenges but has made notable strides to curb losses, although it now finds itself on a leaner footing with fewer aircraft and reduced routes.
In a surprising twist of fate, rapidly evolving competition in the domestic market is forcing Bamboo Airways to rethink its strategies as new entrants like Sun PhuQuoc Airways and Vietravel Airlines loom over its previous market share.
Despite these promising developments, challenges persist. Nguyen Trung Khanh, director general of the Vietnam National Tourism Administration, highlighted the pressing issue of rising airfares, which have surged by 45% on many routes during peak travel seasons. The Bamboo Airways management is acutely aware of the risks posed by resurgent competitors and is calling for measures to enhance service quality and flight safety, all while focusing on financial health and investor attraction.
Amidst the competitive landscape, Vietnam Airlines remains optimistic. Chairman Dang Ngoc Hoa acknowledged the inevitability of competition in an increasingly integrated market, viewing the influx of new airlines as an opportunity to innovate and solidify its status as the national carrier. Plans for investments in technology, personnel, and international partnerships are on the horizon to better meet the evolving expectations of travelers.
What is the main goal of Sun PhuQuoc Airways?
The airline, operated by Sun Group, aims to launch ticket sales by October 2025 and begin flights in December, focusing on premium tourism experiences and expanding to markets in China, Japan, and South Korea.
How is Vietravel Airlines attempting to recover from its challenges?
Vietravel Airlines is bouncing back with support from T&T Group, targeting a fleet of at least ten aircraft by year-end and diversifying its offerings to include a dedicated cargo service.
What are the current challenges facing the Vietnamese tourism and aviation sectors?
Despite the impressive recovery in tourist arrivals, high airfares, especially during peak seasons, continue to pose a challenge, drawing attention from industry leaders who are advocating for strategies to enhance competitiveness.
