HCMC - Bamboo Airways has increased its charter capital by 50% to VND10.5 trillion, now ranking second in terms of charter capital among the domestic airlines, behind national flag carrier Vietnam Airlines with nearly VND14.2 trillion.

Low-cost carrier Vietjet Air ranks third with over VND5.4 trillion.

Bamboo Airways said in a statement that it actively mobilized capital to reinforce its capacity from major shareholders, including its parent company, FLC Group. It also negotiated with bank partners and financial institutions to raise capital and adjust financial terms accordingly.

Besides Bamboo Airways, Vietnam Airlines decided at an extraordinary shareholder meeting in December 2020 to issue shares worth VND8 trillion to its existing stakeholders to raise its charter capital.

Bamboo Airways was founded in May 2017 with initial capital of VND700 billion and launched its maiden flight in 2019. The airline has continuously increased its capital. Last year, Bamboo Airways raised its charter capital from VND4.05 trillion to VND7 trillion.

The airline's earnings before tax in 2020 were estimated at more than VND400 billion, increasing 34% year-on-year.

A critical segment generating great revenue for Bamboo Airways last year was a series of new packages and combos, adapting itself to the needs of the market and passengers at a particular period, including the 5-star flight - resort - golf combo.

In 2020, Bamboo Airways transported more than four million passengers, increasing 40% over the number of flights and passenger volume of 2019.

Meanwhile, Vietjet Air’s revenues fell 56% year-on-year to nearly VND19.8 trillion. Vietjet said it operated some 78,500 flights in 2020, down from 139,000 in 2019.

National flag carrier Vietnam Airlines incurred a loss of more than VND11 trillion last year due to Covid-19.

According to SSI Securities Corporation, airlines will mainly focus on the domestic market in 2021 since international travel would not resume until the end of 2021, and the international aviation market could recover in 2022.

"In 2021, airline strategies will include increasing the number of inbound commercial flights, providing better flight services and offering a range of fares so that passengers have more options," SSI said.

A representative of Bamboo Airways said the airline has planned to expand its fleet from 30 to 50 planes this year. It would add the Boeing 787-9 Dreamliner, the A321NEO ACF and the Embraer E195 to its fleet.

However, with Vietravel Airlines joining the market early this year and the spread of new coronavirus variants, the competition in the aviation market is predicted to become tougher.