In a note on the aviation industry's prospects in 2021, BVSC said: "Airlines have been lowering their prices since the start of 2020 to stimulate travel demand amid the pandemic and to prevent losing passengers to competitors."

Domestic aviation would recover slightly, it said, with the number of passengers increasing by 9.4 percent to 34.7 million.

It expects the government to carefully assess the situation before allowing a resumption of international flights though many countries have begun vaccination.

"Even if international flights resume, the number of tourists will not increase much this year because [they] need time to confirm the effectiveness of the vaccine and also fear that countries may suspend travelling again due to new outbreaks."

It thus expects international flights to resume, but gradually, starting at the end of the third quarter.

It said 1.8 million foreign tourists are likely to visit Vietnam this year.

Vietnam Airlines and its subsidiaries Pacific Airlines and Vietnam Air Services Company are expected to increase their flights by 11.13 percent, and private carriers Vietjet Air and Bamboo Airways by 8.42 percent and 13.9 percent.

Recently Bamboo Airways chairman Trinh Van Quyet said the airline would list in the third quarter this year.