Hanoi (VNS/VNA)  - Since the first coronavirus cases were detected in Vietnam in March, theoutlook for air transport-related stocks has remained negative.

AfterVietnam faced the second wave of coronavirus in mid-July, some investorsexpressed concerns that air transport may never return to its pre-pandemic days.

Inthe air transport sector, airlines firms have seen their revenues declinesharply as the number of passengers falls due to travel restrictions across theworld.

Sharesin Vietnam Airlines (HVN) dropped to a one-year low of 17,800 VND (0.76 USD) on March 31, then bounced back thanks to strong domesticpurchasing power, not because of improvements to its business performance.

Sharesin Vietjet (VJC) have been even more volatile, falling to 95,000 VND apiece in late March and late July following reports of new coronaviruscases.

Thoughthe two airlines have taken measures to cut costs and asked lendersto extend loan and curb interest rates, the situation seems bleak for themgiven the fact the virus has not been contained around the globe.

Unlikeaviation companies, shares in Vietnam’s sole airport operator AirportsCorporation of Vietnam (ACV) were being widely seen as positive in thelong run, stockbiz.vn reported.

Thecompany is authorised to run 22 airports in Vietnam, includingnine international airports and 13 domestic ones. Those include keyairports in major cities and provinces such as Hanoi, HCM City, Da Nang and Khanh Hoa. In the future, it is unlikely that a new rival will rise to competewith the company.

Themonopoly given to ACV allows the company to control talks with serviceproviders if they want to set up sales booths in its airports andprices are almost non-negotiable.

Inthe second quarter of 2020, ACV reported a net loss of 354 billion VND (15.2million USD) as the company had to lower its rental fees for airportretailers, while it recorded a profit of 1.9 trillion VND in the firstquarter.

Butcash and cash-equivalent assets were worth 19 trillion VND on June 30 and thisshould be a great advantage for the firm, according to VietCapital Securities Corporation.

ACVshares (ACV) also dropped to 54,400 VND apiece on March 31 when Vietnam washit with the first coronavirus wave. The company’s stock rose 26.3 percent to 68,700 VND on June 8 and is on its way to hitting that level again.

ACVshares were flat at 62,200 VND apiece on September 22.

Groundcompany Sai Gon Cargo Services JSC (SCSC) has seen the volume of goodsbeing transported through Tan Son Nhat International Airport decline in thelast six months, but analysts have said this situation would not last long.

Theysaid that travel restrictions had been applied for passengers only, andthe cargo transport sector would not suffer too much. Instead of taking peoplefrom one location to another, aviation firms have increased their cargoshipments to offset the impacts of the pandemic on their businesses.

This shiftin focus had helped SCSC keep its profit margin stable compared to thesame period last year, analysts said.

The Hanoi-basedfirm Noi Bai Cargo Terminal Service JSC (NCTS) is also projected to performsimilarly to SCSC.

Recently,Vietnam Airlines and Vietjet re-opened some domestic and international routesand their policies are expected to help boost the performance of ground servicecompanies, including the two firms mentioned above.

SCSCshares (SCS) hit a one-year low of 83,470 VND on March 24 but havesince gained 47.7 percent. The company's stock ended at 123,300 VND on September 22.

NCTSshares (NCT) also went in the direction in late March, falling to 40,170 VND,but have soared 45.5 percent in the last six months.

Thecompany’s shares finished at 67,800 VND on September 22./.