Vietnamese airlines report Q3 loss

By Trang Nguyen
Sun, November 6, 2022 | 9:41 am GMT+7

Vietnamese airlines like Vietjet Air, Vietnam Airlines, or Bamboo Airways continued to report losses in the third quarter of the year.

Planes of Vietnamese airlines. Photo courtesy of Vietnam Television.

Planes of Vietnamese airlines. Photo courtesy of Vietnam Television.

In Q3, Vietjet Air reported net revenue of VND11,600 billion ($466.61 million), up 652% year-on-year, while after-tax profit was VND42.5 billion ($1.71 million), down 40%.

The budget carrier, listed on the Ho Chi Minh Stock Exchange (HoSE) as VJC, said the main reason comes from the high cost of jet fuel averaging $130 per barrel, sometimes increasing to $160 compared to the average of $80 in 2019.

Similarly, the tourism market's strong recovery helped Vietnam Airlines (HoSE: HVN) expand its Q3 revenue by 350% to VND21,156 billion ($850.99 million).

Gross profit was VND165 billion ($6.64 million) and Q3 was the first quarter since the beginning of 2020 for this airline to record gross profit. However, excluding expenses, HVN still lost VND2,546 billion ($102.41 million), although the loss decreased by 28% compared to the same period last year.

The national carrier said the total cost of Q3 surged by 160%, equivalent to an increase of VND10,504 billion ($422.52 million) mainly due to the increase in fuel costs (average fuel price in Q3 up 1.8 times year-on-year) and financial costs (mainly interest expense, exchange rate difference loss).

According to the consolidated financial statement of parent company FLC Group, Bamboo Airways (BAV) recorded a cumulative loss of VND3,500 billion ($140.79 million) in the first nine months of the year. This figure is higher than the loss of nearly VND2,300 billion ($92.52 million) for the whole year of 2021 when the Covid-19 pandemic broke out.

Meanwhile, Vietravel Airlines (UPCOM: VTR), with Vietnam Travel and Marketing Transports JSC holding a 43.92% stake, recorded a loss of VND368.4 billion ($14.82 million) in the nine-month period.

In Q3, VTR recorded a net revenue of VND1,479 billion ($59.49 million), more than 25 times higher than the same period. However, deducting expenses, VTR achieved a net after-tax profit of nearly VND7 billion ($281,400), an improvement compared to a loss of VND192 billion ($7.72 million) in Q3/2021.

In 2023, international aviation is forecast to grow strongly as most countries have lifted restrictions on visitors, hoped to support international travel demand.

In Q3, international arrivals increased 35 times and recovered by 49.8% from before the pandemic. In the base scenario, leading broker VnDirect expects China to gradually lift travel restrictions from Q2/2023. The volume of international arrivals may recover to 84% in Q2/2023 and 100% in Q4/2023, helping international arrivals in 2023 increase by 195% year-on-year.

The broker says it highly appreciates the airline retail model thanks to its high barriers to entry and outstanding profit margins.

The company believes that profit growth from Q3/2022 - 2023 in most segments (ports, airlines, retail) is relatively solid due to the recovery of international visitors. The recent market correction has returned the prices of stocks in the industry close to the time of the Covid-19 outbreak (March 2020).

Therefore, VnDirect thinks this is the time to accumulate aviation stocks with attractive prices and solid profit growth.

However, it noted some industry risks like higher-than-expected fuel prices leading to higher operating costs for airlines, which can increase ticket prices and reduce demand for flights. Bilateral tourism between Vietnam and China will be difficult to recover due to the latter's zero-covid policy; a higher than expected U.S. dollar/Vietnamese dong exchange rate, and rising U.S. dollar interest rates that may affect the borrowing of capital for aviation infrastructure investment in U.S. dollars in the near future.

The country received 2.36 million international arrivals in the first 10 months of the year, 18.8 times year-on-year, but down 83.7% compared to the same period in pre-pandemic 2019.

The tourism's revenues in the period reached VND19,700 billion ($792 million), 3.9 times year-on-year.

Comments (0)
  • Read More
Thailand’s SCG books $301 mln in Q1 sales from Vietnam

Thailand’s SCG books $301 mln in Q1 sales from Vietnam

Siam Cement Group (SCG) reported sales of VND7.77 trillion ($301 million) in Vietnam in Q1/2025, reflecting the country as a key market for the Thai conglomerate in Southeast Asia.

Companies - Sat, June 7, 2025 | 9:54 am GMT+7

Vietnam’s energy firm identifies 3 emissions violations among Vietnamese enterprises

Vietnam’s energy firm identifies 3 emissions violations among Vietnamese enterprises

Looking ahead, 2030 is a milestone year, as major global brands such as Unilever, Nestlé, H&M, and Nike have committed to cutting Scope 1 and Scope 2 emissions by 50-65%, said Pham Dang An, CEO of Vu Phong Energy Group, a major developer of clean energy in Vietnam.

Companies - Sat, June 7, 2025 | 8:00 am GMT+7

Deal acquiring financial firm of Vietnam's SeABank invalid: Aeon Financial

Deal acquiring financial firm of Vietnam's SeABank invalid: Aeon Financial

Aeon Financial Service Co., Ltd. on Friday stated that its deal to purchase a financial company owned by Vietnam's SeABank is invalid due to "inappropriate accounting transactions."

Finance - Fri, June 6, 2025 | 11:57 pm GMT+7

VSAP LAB to build $69 mln chip packaging tech laboratory in central Vietnam

VSAP LAB to build $69 mln chip packaging tech laboratory in central Vietnam

Vietnamese private firm VSAP LAB JSC has been approved as the investor of a VND1.8 trillion ($69.11 million) advanced packaging technology laboratory project that will assist semiconductor production in the central city of Danang.

Industries - Fri, June 6, 2025 | 8:11 pm GMT+7

Vietnam's major property developer Hoang Huy successfully raises $30.7 mln from parent company

Vietnam's major property developer Hoang Huy successfully raises $30.7 mln from parent company

Hoang Huy Investment Services JSC (HoSE: HHS) has successfully issued 64 million shares for VND800 billion ($30.7 million) via private placement to its parent company – Hoang Huy Financial Services Investment JSC (TCH).

Companies - Fri, June 6, 2025 | 3:32 pm GMT+7

Subsidiaries, affiliates likely not to enjoy preferential corporate income tax in Vietnam

Subsidiaries, affiliates likely not to enjoy preferential corporate income tax in Vietnam

Subsidiaries and affiliates of enterprises in Vietnam might not be eligible for preferential corporate income tax (CIT) rates of 15-17%, in order to prevent abuse of incentives like splitting income for tax avoidance, according to the Financial and Economic Committee under the National Assembly, the country's legislature.

Finance - Fri, June 6, 2025 | 3:22 pm GMT+7

VPS Securities JSC named Vietnam’s best broker again by The Asset

VPS Securities JSC named Vietnam’s best broker again by The Asset

VPS Securities JSC (VPS) has once again been honored as the “Best Brokerage House in Vietnam” at the Triple A Awards 2025, presented by The Asset, a leading Asia-focused financial publication.

Companies - Fri, June 6, 2025 | 11:40 am GMT+7

Vietnam's agri major BAF eyes two 6-story buildings for pig farming in southern Vietnam

Vietnam's agri major BAF eyes two 6-story buildings for pig farming in southern Vietnam

BAF Vietnam Agriculture JSC has submitted a proposal to the Ministry of Agriculture and Environment to develop a smart pig farming complex including two six-story buildings in the southern provinces of Tay Ninh and Binh Phuoc.

Industries - Fri, June 6, 2025 | 11:20 am GMT+7

Food major Kido leaders reveal real estate ambitions

Food major Kido leaders reveal real estate ambitions

Leaders of Kido Group, a leading Vietnamese food and cooking oil producer, said they see many positive policies that are helping to ease real estate market difficulties and create favorable conditions for the company to develop projects on its land reserves.

Real Estate - Fri, June 6, 2025 | 11:03 am GMT+7

Indonesia accelerates procedures to join OECD

Indonesia accelerates procedures to join OECD

The Indonesian Government has finalised the preparation of the Initial Memorandum (IM) for its accession to the Organisation for Economic Co-operation and Development (OECD), which will be submitted to OECD Secretary-General Matthias Cormann in Paris, France.

Southeast Asia - Fri, June 6, 2025 | 10:16 am GMT+7

OECD lowers Indonesia's growth forecast to 4.7%

OECD lowers Indonesia's growth forecast to 4.7%

The Organisation for Economic Cooperation and Development (OECD) has lowered its forecast for Indonesia's economic growth down to 4.7% this year, from the previous 4.9%, due to weakened domestic sentiment and heightened external risks.

Southeast Asia - Fri, June 6, 2025 | 10:15 am GMT+7

Vietnam, US sign additional agricultural trade deals worth over $600 mln

Vietnam, US sign additional agricultural trade deals worth over $600 mln

Vietnam and the U.S. on Wednesday signed MoUs on importing animal feed materials from Ohio state with total value exceeding $600 million.

Economy - Fri, June 6, 2025 | 10:03 am GMT+7

My Thuy deepwater port to become central Vietnam logistics hub

My Thuy deepwater port to become central Vietnam logistics hub

My Thuy Deepwater Port, once operational, will not only create a new growth pole for the central province of Quang Tri and serve as a gateway to the East Sea, but also become a regional logistics hub.

Infrastructure - Fri, June 6, 2025 | 8:00 am GMT+7

Vietnam's 5-month registered FDI hits $18.4 bln, up 51%

Vietnam's 5-month registered FDI hits $18.4 bln, up 51%

Registered foreign direct investment (FDI) in Vietnam hit $18.4 billion in the first five months of the year, up 51.1%, while disbursed capital reached $8.9 billion, up 7.9%.

Economy - Thu, June 5, 2025 | 6:52 pm GMT+7

Indonesia launches economic stimulus package to boost purchasing power

Indonesia launches economic stimulus package to boost purchasing power

The Indonesian Government has rolled out an economic stimulus package worth IDR24.44 trillion (nearly $1.53 billion) to maintain consumer purchasing power and stabilize the national economy.

Southeast Asia - Thu, June 5, 2025 | 4:06 pm GMT+7

Vinhomes subsidiary to develop two industrial parks worth $383 mln in northern Vietnam

Vinhomes subsidiary to develop two industrial parks worth $383 mln in northern Vietnam

Vinhomes Hai Phong Industrial Park Investment JSC under Vinhomes, the housing arm of Vietnam’s conglomerate Vingroup (HoSE: VIC), is expected to be the investor of two industrial parks worth VND10 trillion ($383 million) in the northern port city of Hai Phong.

Real Estate - Thu, June 5, 2025 | 3:54 pm GMT+7