Vietnam Airlines posts record profit in 2025 on international expansion, fuel price decrease

Vietnam Airlines (HoSE: HVN) reported its highest-ever profit and revenue in 2025, marking a major milestone in its post-pandemic recovery as the national flag carrier expanded international operations amid a volatile global environment.

The state-controlled airline said consolidated revenue reached more than VND123 trillion ($4.68 billion) in 2025, up 10% from a year earlier. This means it earned VND336 billion ($12.79 million) in daily revenue, an all-time high in the carrier's 30 years of operation.

Pre-tax consolidated profit rose to VND8.45 trillion ($321.6 million), rising marginally by 0.4%, reflecting improvements in operational efficiency following a period of market disruption.

In the fourth quarter alone, the carrier posted revenue of about VND33.88 trillion ($1.29 billion), up 26.3% year-on-year, while pre-tax profit fell 24.17% to VND869 billion ($33.08 million).

Beyond financial performance, 2025 marked the largest-ever expansion of Vietnam Airlines’s international route network. During the year, the carrier launched or resumed 14 international routes, strengthening connectivity between Vietnam and key markets in Europe, Northeast Asia, the Middle East, and Southeast Asia.

The expansion has enhanced the airline’s competitiveness in the global aviation market and supported trade and tourism flows, reinforcing Vietnam’s role as a regional and international air transport hub in line with the country’s broader international integration strategy.

Operating metrics also improved significantly in 2025. Vietnam Airlines operated 156,300 flights, up 11.8% from the previous year. Passenger traffic rose 12.7% to 25.64 million, while cargo volumes increased 10% to 344,000 tons.

The "cooling down" in aviation fuel prices last year was also one of the main reasons for the airline's improved operational efficiency. Vietnam Airlines recorded the average price of Jet A1 fuel in 2025 at $86.8 per barrel, a decrease of nearly 10% compared to 2024. Three years prior, the average aviation fuel prices were $96.3, $105.4, and $124 per barrel, respectively.

Shares of Vietnam Airlines (HVN) closed Wednesday at VND29,650 ($1.13), up the daily limit of 6.45%, as investor sentiment improved following the earnings announcement.

The International Air Transport Association (IATA) forecasts global airline profits this year at approximately $41 billion, up nearly 4%. Of this, Asia-Pacific airlines could earn $6.6 billion, an increase of about 2.3%. The organization stated that Vietnam is one of the top 10 fastest-growing aviation markets in the region in terms of traffic growth.

According to IATA, there is still significant room for growth for domestic airlines, as Vietnam currently has direct flights to over 30 countries, while Thailand and Singapore have direct connections to more than 50. However, domestic airlines will face competitive pressure from foreign airlines operating flights to Vietnam.