Vietnam Airlines reported a pre-tax profit of over VND4.5 trillion (US$171 million) for the first quarter, up 30% year-on-year, driven by unusually strong Tet demand this year and new flights to Europe.
Its consolidated revenues rose to VND37.5 trillion, a 23% increase.
During the peak Lunar New Year travel season, which is usually between mid- January and mid-February, daily flights numbered 660–670, up 13% from Tet 2025.
International expansion also played a key role, particularly with the addition of new European destinations to the airline’s schedule.
A Vietnam Airlines aircraft lands at Tan Son Nhat International Airport in Ho Chi Minh City, June 15, 2020. Photo by Read/Quynh Tran |
Revenues from international services jumped by 28.6% as against 2.9% in the case of domestic revenues.
The carrier operates 11 direct flights to Europe, and plans to launch a Hanoi–Amsterdam service in June and expand the Hanoi–Moscow service to four flights a week from the current three starting in July.
The airline carried more than 6.9 million passengers on nearly 43,000 flights, up 12% and 11% year-on-year.
Despite volatility in global energy markets linked to Middle East conflicts since early March, the airline said its first-quarter performance remained largely unaffected.
But it warned of mounting pressure in the second quarter due to rising fuel costs.
By late April, Jet A1 fuel prices were projected at $190–220 per barrel, about three times normal levels, and at times exceeding $240.
Vietnam Airlines’ costs increase by VND300 billion a year for every $1 per barrel rise in fuel prices.
To mitigate risks, the carrier said it plans to keep operations flexible and optimize key domestic and international routes.
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