Vietnam Airlines Breaks New Ground On Independent Airline And Travel Services Set For Launch

Vietnam Airlines is making a bold leap into both air freight and travel by planning to launch an independent airline by 2026. This strategic shift comes as the airline recognizes the increasing demand for freight services and aims to capitalize on the booming global freight market. By establishing a separate division, Vietnam Airlines intends to strengthen its position in the logistics sector while expanding its travel services, thus positioning itself for long-term growth and profitability in both industries.

Vietnam Airlines (VN) is taking a bold step into the air freight business, but it’s not just about filling the cargo holds of its passenger jets. The airline has unveiled plans to establish a full-fledged, independent cargo airline by 2026, capitalizing on the soaring demand in the global freight market. This announcement came directly from the airline’s leadership during its shareholder meeting on June 25, 2025.

Freight: The Core of Vietnam Airlines’ Future

For many airlines, cargo was once a secondary business. It helped fill the gaps during the COVID-19 pandemic when passenger numbers dwindled. However, for Vietnam Airlines, freight is no longer just a supplementary service; it has become the main driver of growth. The airline’s second-quarter 2025 results illustrate this shift. Cargo revenue accounted for approximately 65 percent of the airline’s total revenue—a staggering figure for an airline that has traditionally focused on passenger traffic. In fact, this freight boom helped Vietnam Airlines generate a pre-tax profit of 1 trillion Vietnamese dong (around US$40.8 million) during that quarter alone. If this momentum continues, the airline could see record-breaking profits, expected to reach 4 trillion dong (around US$153 million) by mid-2025, with freight contributing heavily to that figure.

Converting A321s to Freighters

So, how is Vietnam Airlines planning to launch its cargo operations in 2026? The airline is starting by leveraging its existing fleet. Several Airbus A321s from its passenger service will be converted into freighters through P2F (passenger-to-freighter) modifications. These conversions are set to be completed by the end of 2025, providing a solid foundation for the new cargo airline when it officially begins operations the following year. The decision to repurpose existing aircraft is a smart, cost-effective way to quickly establish cargo capacity without committing excessive funds to new aircraft purchases.

In addition to the A321 conversions, Vietnam Airlines also plans to lease dedicated freighter aircraft, further boosting its cargo capabilities and facilitating the expansion of its international routes. By combining repurposed passenger planes with leased freighters, the airline can rapidly scale up its cargo operations while keeping costs in check. This strategy allows Vietnam Airlines to remain flexible as it adapts to growing market demand without burning through capital too quickly.

Building Key Logistics Hubs

While the aircraft conversions are an essential part of the plan, the airline is also focusing on establishing the infrastructure needed to support its new cargo operations. Two key airports—Long Thành Airport (DLI) near Ho Chi Minh City and Gia Bình Airport (QBN) near Hanoi—are being developed into crucial logistics hubs. These airports will not only serve as cargo terminals but will be transformed into high-capacity logistics centers capable of handling large volumes of freight.

The vision is to create regional hubs that rival other major logistics centers in Southeast Asia, such as those in Bangkok, Kuala Lumpur, and Singapore. These facilities will offer more than just cargo handling; they will be equipped to handle end-to-end logistics and distribution services, positioning Vietnam Airlines as a formidable competitor in the rapidly expanding e-commerce and supply chain sectors. As the airline builds out these facilities, it is laying the groundwork to become a key player in the global freight industry.

The Timing Is Right for Cargo Expansion

Why is Vietnam Airlines making this move now? The answer lies in the current global landscape. The demand for air freight remains strong, especially in Asia, where e-commerce is experiencing rapid growth. In addition, shifting supply chains are driving an increased need for efficient, reliable cargo services. Airlines that invested early in dedicated freighter fleets are now reaping the rewards, and Vietnam Airlines is aiming to position itself as a long-term leader in this lucrative market.

Of course, the airline will face challenges. Volatile fuel prices and ongoing geopolitical tensions could create headwinds for its operations. However, Vietnam Airlines appears to be ready to navigate these uncertainties. The airline plans to remain flexible by using leased aircraft, forming strong partnerships, and embracing digital cargo services to streamline booking and tracking. This approach will allow the airline to build a smarter, faster cargo network that adds value for customers while driving profitability.

Competing in a Growing Market

Vietnam Airlines is not alone in its ambition to tap into the growing air freight market. Other carriers, such as IndiGo, have already launched freighter services, converting Airbus A321s to handle shorter regional routes. Similarly, companies like Atlas Air operate large freighter fleets under leasing and ACMI contracts. Vietnam Airlines’ strategy of starting with converted A321s allows it to build capacity gradually and in a cost-effective manner, providing the airline with a solid foundation for future growth.

Although the airline has not yet disclosed details about its freighter leasing arrangements, its strategy to focus initially on narrowbody aircraft shows a practical, scalable approach to building a freighter network. By starting with smaller, more affordable aircraft, Vietnam Airlines can expand its cargo operations without committing to massive upfront investments in large wide-body freighters.

What to Expect from the New Cargo Unit

The exact name of the new cargo division has not yet been revealed, but it’s clear that this is no small venture. This is a strategic shift for Vietnam Airlines, signaling its intent to compete seriously in the logistics and freight sector. With converted A321 freighters expected to begin regional operations by 2026, the airline will be well-positioned to meet growing demand across Southeast Asia and beyond.

In the coming years, Long Thành and Gia Bình airports will play an essential role in supporting Vietnam’s export economy, acting as key nodes in the airline’s expanding cargo network. If the airline’s plans align as expected, Vietnam Airlines could emerge as one of Southeast Asia’s leading air cargo carriers in the next few years.

A Bold Move with High Stakes

Vietnam Airlines is making a bold move into the air freight and travel sectors by launching an independent airline by 2026. This strategic decision comes in response to the growing demand for freight services and aims to position the carrier as a major player in both the travel and logistics industries.

This is a bold move for Vietnam Airlines, but one that makes perfect sense given the airline’s current trajectory. As freight continues to account for a significant portion of its revenue, the decision to launch a dedicated cargo operation positions Vietnam Airlines to capitalize on the future growth of the global freight industry. The move is ambitious, but with the airline’s strong performance in air cargo and a well-thought-out plan in place, it could very well secure Vietnam Airlines’ place as a top competitor in the Southeast Asian cargo market.

Advertisement

Share On:

«Enjoyed this post? Never miss out on future posts by following us»