Vietnam Airlines and Vietjet Air Q1 Earnings Beat: Revenue, Profit Surge Amid Fuel Cost Risks

Overview

Vietnam Airlines (HVN) and Vietjet Air (VJC) reported robust first-quarter earnings, driven by strong international travel demand and cost controls. However, both carriers flagged rising jet fuel costs as a major risk for the remainder of the year, with fuel prices nearly tripling from normal levels.

Key Facts

• Vietnam Airlines (HVN) Q1 consolidated revenue: over 37,500 billion VND; after-tax profit: 4,514 billion VND.
• Vietjet Air (VJC) Q1 consolidated revenue: 21,021 billion VND (+17% YoY); pre-tax profit: 1,142 billion VND (+36% YoY).
• HVN operated nearly 43,000 flights in Q1, serving over 6.9 million passengers (+11% flights, +12% passengers YoY).
• HVN signed a contract to purchase 50 Boeing 737-8 aircraft for fleet modernization.
• Jet A1 fuel price averaged 190-220 USD/barrel in April, with peaks above 240 USD/barrel, nearly triple the normal 80-90 USD/barrel range.
• HVN estimates each 1 USD/barrel increase in fuel price adds over 300 billion VND to annual costs.
• VJC’s pre-tax profit growth of 36% YoY outpaced revenue growth of 17%.

What Happened

Vietnam Airlines (HVN) reported its Q1 2025 results, showing consolidated revenue exceeding 37,500 billion VND and after-tax profit of 4,514 billion VND. The parent company alone posted revenue of over 29,500 billion VND and after-tax profit of 3,948 billion VND. The airline attributed the strong performance to robust international travel demand, flexible operations, optimized flight schedules, and cost control. The impact of Middle East conflicts on fuel costs was not yet evident in Q1.

Vietjet Air (VJC) also reported strong Q1 results, with consolidated revenue of 21,021 billion VND (up 17% YoY) and pre-tax profit of 1,142 billion VND (up 36% YoY). Both airlines are expanding international routes: HVN plans to launch a Hanoi-Amsterdam route on June 16 and increase frequency on the Hanoi-Moscow route from July.

Market Context

HVN shares closed at 23,000 VND (+2.24%) on April 15, 2026, with volume of 1,115,400 shares on HOSE. VJC shares closed at 176,000 VND (+5.82%) on the same day, with volume of 2,544,700 shares. The positive earnings reports come amid a broader recovery in Vietnamese aviation, but rising fuel costs pose a significant threat to margins. The sector is also sensitive to geopolitical developments affecting fuel prices.

Strategic Significance

The Q1 results demonstrate that both HVN and VJC are benefiting from the post-pandemic travel rebound, particularly in international markets. HVN’s fleet modernization with 50 Boeing 737-8 aircraft signals long-term capacity expansion and cost efficiency improvements. However, the sharp rise in jet fuel prices—from a normal range of 80-90 USD/barrel to current levels of 190-220 USD/barrel—could erode profitability in subsequent quarters. HVN’s sensitivity analysis shows that each 1 USD/barrel increase adds over 300 billion VND in annual costs, implying a potential impact of tens of billions of VND per quarter if fuel prices remain elevated. Investors should monitor fuel hedging strategies and cost pass-through mechanisms.

What to Watch

• Q2 2025 earnings reports from HVN and VJC, expected in July 2025, to assess fuel cost impact.
• Jet A1 fuel price trends and any hedging disclosures by the airlines.
• Expansion of international routes and load factor data for new routes.
• Delivery schedule for HVN’s Boeing 737-8 aircraft and financing details.
• Any government policy responses to high fuel prices, such as tax reductions or subsidies.