Vietnam Airlines to pay dividends after accumulated losses are fully cleared: chairman

National flag carrier Vietnam Airlines will allocate appropriate resources to begin paying dividends to shareholders right after its accumulated losses during the 2030-2032 period are full cleared, said its chairman Dang Ngoc Hoa.

The airline has still accumulated losses on its balance sheet and, under current regulations, is therefore not permitted to distribute dividends to shareholders, he explained at the company’s 2026 AGM on Sunday.

According to a report presented at the meetng, Vietnam Airlines, listed on the Ho Chi Minh Stock Exchange as HVN, recorded consolidated revenue of VND123.86 trillion ($4.71 billion) in 2025, with consolidated after-tax profit reaching VND7.61 trillion ($289.19 million). The airline safely operated more than 156,200 flights, transported 25.65 million passengers, and carried 340,200 tons of cargo.

However, in 2026, the state-controlled carrier has faced significant challenges stemming from geopolitical tensions in the Middle East, which have driven Jet A1 fuel prices sharply higher.

CEO Le Hong Ha stated that if the average Jet A1 fuel price reaches about $128.54 per barrel for the year, nearly 48% higher than in 2025, the increase in fuel prices alone would add around VND11.9 trillion ($452.4 million) in costs, excluding the impacts of exchange rate fluctuations and flight operations.

Based on an average fuel price scenario of $120 per barrel during the second half of 2026, Vietnam Airlines targets consolidated revenue of VND138.9 trillion ($5.28 billion), up 12.1% year-on-year, while parent company revenue is expected to reach VND115.05 trillion, representing a 17.3% increase.

Its consolidated pre-tax profit is projected at VND510 billion ($19.39 million), while parent company pre-tax profit is expected to reach VND101 billion.

According to Ha, the modest profit target reflects the company's substantial efforts to manage operations and reduce costs despite continuing pressure from high fuel prices, exchange rate volatility, and elevated operating expenses.

For 2026, Vietnam Airlines aims to transport 27.73 million passengers and 361,400 tons of cargo, up 8.1% and 6.2% year-on-year respectively. The company also plans to invest VND5.23 trillion ($198.81 million) in development projects, focusing on aircraft acquisitions, infrastructure, equipment, and capital contributions to subsidiaries.

Alongside its business plan, Vietnam Airlines will continue to manage cash flow prudently to ensure sufficient liquidity under all market scenarios. According to the company, its strong Q1/2026 performance increased its cash balance to over VND16.66 trillion ($633.23 million) by the end of the quarter, providing a financial buffer against fuel price volatility in Q2 and beyond.

Achieving the goal of restoring positive equity

At the AGM, the board of directors also reported that the company's restructuring plan for the 2021-2025 period had been substantially completed.

According to board member Ta Manh Hung, the restructuring plan's primary objective was to restore the company's financial health and eliminate its negative shareholders' equity.

As of December 31, 2025, the shareholders' equity of the parent company stood at nearly VND8.88 trillion ($337.51 million), while consolidated shareholders' equity reached about VND6.82 trillion.

Vietnam Airlines also achieved profitability for two consecutive years. Parent company after-tax profit reached VND2.78 trillion ($105.67 million) in 2024 and VND5.51 trillion in 2025, with consolidated after-tax profit amounting to VND7.96 trillion ($302.53 million) and VND7.71 trillion, respectively.

Chairman Hoa stated that Vietnam Airlines's recovery has been driven primarily by improvements in its core business operations rather than one-off gains or extraordinary income.

According to him, the airline generated nearly VND4 trillion ($152.03 million) in profit during Q1/2026, with 96.5% derived from core operations. In 2025, approximately 97% of both the parent company's and the group's after-tax profit also came from core business activities.

He noted that in 2024, Vietnam Airlines recorded a one-time gain of approximately VND4.7 trillion ($178.66 million) after international creditors wrote off debt owed by its subsidiary Pacific Airlines. However, despite the absence of such extraordinary income in 2025 and 2026, the company's operating performance has remained strong.

"This result demonstrates that the corporation's operational efficiency has improved significantly, supported by the recovery of both domestic and international aviation markets. In addition, we have implemented measures to optimize costs, improve fleet utilization, strengthen revenue management, and expand ancillary revenue streams," Hoa said.

In the Ho Chi Minh Stock Exchange (HoSE), HVN closed Friday at VND23,000 ($0.87) per share.