Vietnam Airlines posts first profit in 4 years, record revenue since listing

National flag carrier Vietnam Airlines JSC is estimated to earn VND6.26 trillion ($246.57 million) in pre-tax profit in 2024, marking its first return to profitability since 2020.

The pre-tax profit is anticipated to exceed the year’s target by 38.5%, a company representative said at a meeting featuring five major state-owned enterprises (SOEs) last Monday.

The carrier is projected to generate VND113.57 trillion ($4.4 billion) in revenue this year, surpassing the year’s target by 7%. This would represent the highest annual revenue since its listing on the Ho Chi Minh Stock Exchange as HVN in 2019.

Vietnam Airlines is estimated to contribute VND2.9 trillion ($114.1 million) to the state budget in 2024, doubling its goal.

Despite these positive results, the carrier's representative acknowledged ongoing challenges to the company, including global geopolitical conflicts, exchange rate fluctuations, and volatile fuel prices.

Vietnam Airlines has finalized a comprehensive recovery plan addressing the Covid-19 fallout, which has been submitted to relevant authorities.

In 2025, the company aims to escape negative consolidated equity, restructure its assets and investment portfolio, and prepare for a share issuance to hike its capital base. These measures are expected to boost revenue, improve cash flow, and enhance financial stability.

At the meeting, four other SOEs – Airports Corporation of Vietnam (ACV), Vietnam Maritime Corporation (VMC), Vietnam Railways (VNR), and Vietnam Expressway Corporation (VEC) – also reported positive business results in 2024.

ACV is projected to achieve nearly VND21.64 trillion ($851.7 million) in revenue for 2024, a 7.6% increase year-on-year, exceeding its target by 6%.

The company is expected to post a pre-tax profit of VND4.48 trillion ($176.7 million), down 4.9% year-on-year but surpassing its goal by 6.4%. ACV’s contribution to the state budget in 2024 is estimated at VND9.98 trillion ($392.8 million).

VMC is likely to post a pre-tax profit of VND2.87 ($113 million) on revenue of VND17.49 trillion ($688.6 million) this year, up 35.1% and 36.7% from 2023 and surpassing the targets by 5% and 30%, respectively.

VNR is expected to meet its pre-tax profit target with earnings of VND130 billion ($5.12 million) in 2024 while generating VND9.55 trillion ($376.1 million) in revenue, 6.2% above its plan. The company is projected to contribute VND767 billion ($30 million) to the state budget.

VEC is expected to record a pre-tax profit of VND485 billion ($19.1 million) on revenue of VND6.16 trillion ($242.75 million), 61% and 105% higher than the year’s targets, respectively.