Vietnam Airlines posted a pre-tax profit of VND19.3 billion ($822,500) in the first quarter after losses in 12 consecutive quarters. The airline saw revenue doubling year-on-year to VND23.64 trillion, the highest quarter record since Q1 2020.
It is near the pre-pandemic levels of 2019. The state-owned carrier however still posted a post-tax loss of VND37.3 billion.
The pre-tax profit, however, is still considered a strong signal of recovery after the carrier plunged into major financial difficulties due to Covid-19.
The airline said that in the first quarter of this year, the domestic market recovered, and China lifted its Covid-19 restrictions, which resulted in a surge in passenger numbers.
There was also high occupancy on flights to the United States., Europe and Australia, it added.
The company served 5.1 million passengers in the first quarter, up 63% year-on-year. A weaker U.S. dollar and lower-than-expected fuel prices also helped reduce costs.
But Vietnam Airlines, which operates Pacific Airlines and Vietnam Air Services Company, still sees high risks in the future as the domestic market remains 40% lower than pre-pandemic.
It added that global geopolitical tensions will likely still affect the aviation industry in 2024.