Vietnam Airlines posts profit after 4 consecutive years of losses

National flag carrier Vietnam Airlines reported a consolidated pre-tax profit of VND7.72 trillion ($307.8 million) in 2024, a sharp turnaround from the previous year when the airline faced a loss of more than VND5.3 trillion.

According to its recently released consolidated financial statement, the carrier, listed on the Ho Chi Minh Stock Exchange (HoSE) as HVN, posted total revenue of over VND106.75 trillion ($4.26 billion) last year, up 16.5% from 2023.

Both revenue and profit figures were the highest it had ever achieved.

For the fourth quarter of 2024, the airline earned revenue of nearly VND26.83 trillion ($1.07 billion), an 11.5% increase year-on-year.

A significant cost reduction helped the airline achieve a gross profit of VND4.38 trillion ($174.64 million), compared to just over VND189 billion in Q4/2023.

After deducting expenses, Vietnam Airlines reported a consolidated pre-tax profit of VND1.15 trillion ($45.85 million) for Q1/2024, marking its fourth consecutive profitable quarter.

Vietnam Airlines' positive performance came in the context of its full recovery of international flight networks in 2024, as well as the launch of new routes. Domestic ticket prices also rose significantly in the first half of the year, with some routes seeing an increase of 15-20% on average.

However, as of December 31, the airline still faced a cumulative loss of over VND34.3 trillion ($1.37 billion), resulting in negative equity of more than VND10 trillion ($398.72 million).

At an extraordinary meeting scheduled for next month, Vietnam Airlines will present to its shareholders a proposal to issue new shares to increase its charter capital and update its restructuring plan through 2025.

This move aims to quickly improve the company’s financial capacity and stabilize cash flow. The airline will also seek shareholder approval for its narrow-body aircraft investment project.

In late November 2024, the National Assembly, the country's legislature, approved measures to help the airline recover from the pandemic’s impact. Accordingly, Vietnam Airlines will be allowed to issue additional shares to existing shareholders to increase its charter capital by up to VND22 trillion ($877.2 million) in two stages, in compliance with the Securities Law.

Additionally, the National Assembly had granted permission for Pacific Airlines, a subsidiary of Vietnam Airlines, to have late payment fines and tax arrears waived until December 31, 2024.

In the stock market, HVN closed Friday at VND26,850 ($1.07) per share.