VietJetAir Plans $95 Million Bond Issue to Fund Fleet Growth
Vietnamese low-cost carrier VietJet Air is moving to strengthen its liquidity and support near-term operational needs after its board approved the issuance of unsecured corporate bonds worth VND2.5 trillion (USD95 million).
According to a resolution dated December 30, 2025, the board of VietJet Aviation JSC authorised the issuance of non-convertible bonds, marking the airline’s third bond tranche of the year. The offering will consist of 25,000 bonds, each with a par value of VND100 million (approximately USD3,800), underscoring VietJet’s continued reliance on domestic capital markets to fund growth.
The airline said proceeds from the bond sale will be used to cover fuel expenses, airport and service fees, and pre-delivery payments for aircraft scheduled to be delivered beginning in early 2026. These expenditures are closely tied to VietJet’s expanding flight programme and ongoing fleet renewal strategy as the carrier ramps up capacity to meet rising travel demand across Southeast Asia and beyond.
VietJet has been one of the fastest-growing airlines in the region, operating a predominantly Airbus single-aisle fleet and steadily expanding its international footprint. Like many low-cost carriers, it faces persistent cost pressures from fuel price volatility and airport charges, making access to flexible financing increasingly important. The use of unsecured, non-convertible bonds allows the airline to raise capital without diluting equity or pledging specific assets as collateral.
The bond issuance also reflects broader trends in Vietnam’s aviation sector, where airlines are turning to local debt markets to finance growth amid tight global credit conditions. Analysts note that VietJet’s ability to complete multiple bond tranches in a single year suggests continued investor confidence in the airline’s business model and long-term prospects.
Separately, VietJet’s board approved a significant capital increase at its wholly owned subsidiary Airport NEO LLC, formerly known as Vietjet Ground Services LLC. The charter capital of the unit will be doubled to VND200 billion (USD7.6 million), signalling a renewed focus on vertically integrating airport and ground handling services.
Airport NEO plays a role in providing ground support services across VietJet’s network, and the capital injection is expected to support expanded operations, infrastructure investment, and service quality improvements. By strengthening its in-house ground handling capabilities, VietJet aims to improve operational control, reduce third-party costs, and enhance turnaround efficiency at key airports.
Together, the bond issuance and subsidiary capital increase highlight VietJet’s multi-pronged financial strategy as it prepares for another phase of fleet and network expansion in 2026. With new aircraft deliveries on the horizon and demand continuing to recover across Asia-Pacific markets, the airline is positioning itself to balance growth ambitions with disciplined financial management.
As VietJet enters the new year, the latest funding moves reinforce its focus on maintaining liquidity, supporting operational resilience, and investing in infrastructure that underpins long-term competitiveness in the increasingly crowded low-cost aviation market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com