In the first quarter, Vietnam Airlines experienced a surge in pre-tax profits, reaching over VND4.5 trillion (US$171 million), a 30% increase compared to the same period last year. This substantial growth is attributed to high demand during the Tet holiday and the introduction of new European routes.
The airline’s consolidated revenues witnessed a 23% rise, totaling VND37.5 trillion. The Lunar New Year’s peak travel season, typically spanning from mid-January to mid-February, contributed significantly to this growth. Daily flights during this period numbered between 660 and 670, marking a 13% increase from the previous Tet season in 2025.
International expansion also significantly bolstered the airline’s performance, especially the addition of fresh European destinations to its schedule. The revenue from international services experienced a 28.6% increase, a stark contrast to the mere 2.9% uptick in domestic revenues.
At present, Vietnam Airlines operates 11 direct flights to Europe. It has plans to launch a Hanoi-Amsterdam service in June and boost the Hanoi-Moscow service to four flights each week from July, up from the current three flights per week.
In the first quarter, the airline transported over 6.9 million passengers across nearly 43,000 flights, showing a year-on-year growth of 12% and 11% respectively.
Despite the turbulence in global energy markets caused by conflicts in the Middle East since early March, Vietnam Airlines’ performance in the first quarter remained largely unaffected. However, the airline foresees potential challenges in the second quarter due to rising fuel prices.
By late April, Jet A1 fuel prices were estimated at $190-220 per barrel, approximately three times the regular levels, occasionally even exceeding $240. A $1 per barrel increase in fuel prices adds an additional VND300 billion to Vietnam Airlines’ yearly costs.
In response to these challenges, the airline plans to maintain flexible operations and optimize crucial domestic and international routes.
What factors contributed to the surge in Vietnam Airlines’ pre-tax profits?
The significant increase in pre-tax profits can be attributed to high demand during the Tet holiday and the addition of new European routes.
How is Vietnam Airlines planning to handle the potential challenges due to rising fuel costs?
The airline plans to maintain flexible operations and optimize key domestic and international routes to mitigate risks associated with increasing fuel prices.
What future plans does Vietnam Airlines have for its European services?
The airline plans to launch a Hanoi-Amsterdam service in June and increase the frequency of the Hanoi-Moscow service to four times per week, up from the current three, starting from July.
