Vietnam Airlines posts strong profit on international passenger surge, fuel price decline

National flag carrier Vietnam Airlines (HVN) said on Wednesday that it recorded consolidated pre-tax profit of around VND3.6 trillion ($138 million) on consolidated revenue of approximately VND31.1 trillion ($1.2 billion) in Q1/2025.

The consolidated revenue rose by around 11% compared to Q1/2024, marking the fifth consecutive quarter the company’s revenue hovered around $1 billion.

The airline’s strong performance was driven by a surge in international passenger traffic, lower fuel prices year-on-year, and its own "flexible and efficient operations".

In Q1, international passenger arrivals to Vietnam reached approximately 11.7 million, up 13.3% year-on-year, while domestic passenger volume exceeded 9 million, rising 3.6%.

Vietnam Airlines recorded positive business results in the context of Q1 being the peak (Lunar New Year) Tet service season in the domestic aviation market.

During the period, Vietnam Airlines Group, comprising Vietnam Airlines, Pacific Airlines and VASCO, served nearly 6.2 million passengers, up 6.7% year-on-year. Vietnam Airlines alone carried over 6 million, up 6.5%.

All international markets recorded positive growth, with India seeing the strongest increase at 26.6%, followed by the Middle East 25.8%, and Northeast Asia 13.6%, driven by the recovery of mainland China, Taiwan, and Hong Kong markets.

The quality of international passengers has also noticeably improved, particularly in high-revenue markets such as Japan, Australia, and India. The high-revenue segment from Japan has recovered to nearly 90% of the pre-pandemic level in 2019, up from around 60% in the same period last year.

The parent company, Vietnam Airlines, reported revenue of about VND25 trillion ($961.4 million) and pre-tax profit of around VND3.04 trillion (about $116.9 million).

Vietnam Airlines benefited from an average fuel price of around $91 per barrel in Q1, nearly 5% lower than the average of the previous year and significantly below forecasts, thereby improving cost efficiency.

In addition to passenger services, cargo operations also recorded positive results, with revenue in Q1 exceeding the projection by over VND220 billion ($8.5 million).

The positive business results provided a solid foundation for the airline to effectively implement its 2025 business plan.

Vietnam Airlines is urgently preparing resources for the summer peak, while also flexibly managing its flight network to optimize costs and increase revenue.

It is also proactively planning to lease additional aircraft and working to expand key international routes, diversify its network, and strengthen its position in the international market.

The national carrier is accelerating the implementation of key projects at Long Thanh International Airport in the southern province of Dong Nai, in line with the government’s required timeline, while restructuring its assets, optimizing its financial investment portfolio to increase income and cash flow, and aiming for sustainable development.

On April 28, the government approved the carrier’s proposal to purchase 50 narrow-body aircraft without guarantees.

The carrier had earlier sought approval for an investment project involving 50 narrow-body jets - either Airbus A320 NEOs or Boeing 737 MAXs - along with 10 spare engines.

The total investment is estimated at nearly $3.7 billion, equivalent to 1.6 times the airline’s total assets, according to its 2024 financial report.

During Deputy Prime Minister Ho Duc Phoc’s visit to the U.S. earlier this month, Vietnam Airlines signed an MoU with Citibank, securing a funding commitment amounting to $560 million to support its key projects, including aircraft purchases.

Last week, the airline signed an MoU with state-controlled Vietcombank, one of Vietnam's big 4 banks, to arrange funding for the purchase of 50 narrow-body aircraft during the 2026-2032 period.