Vietnam Airlines (HVN) Posts H1 2024 Net Profit of 3,852 Billion VND Despite Q2 Loss

Overview

Vietnam Airlines (HVN) reported a consolidated net profit of 3,852 billion VND for the first half of 2024, a sharp turnaround from a loss in the same period last year. The result came despite a net loss of over 600 billion VND in Q2 2024, driven by a nearly 59% surge in cost of goods sold due to elevated Jet A1 fuel prices. Revenue grew 36% year-on-year to 38,365 billion VND, supported by strong international passenger demand and network expansion.

Key Facts

• H1 2024 consolidated net profit: 3,852 billion VND, compared to a loss in H1 2023.
• Q2 2024 net loss: over 600 billion VND, the first quarterly loss since Q4 2023.
• H1 2024 revenue: 38,365 billion VND, up 36% year-on-year.
• Cost of goods sold in Q2 rose nearly 59% to over 36,600 billion VND, mainly due to higher Jet A1 fuel prices.
• H1 2024 gross profit: approximately 1,700 billion VND, down over 3,200 billion VND from H1 2023.
• International passengers carried: nearly 4.8 million, up 19% year-on-year.
• Total flights operated: over 80,000; passengers carried: over 13 million, up 4%.
• New international routes launched in 2024 include Amsterdam, Phuket, with increased frequencies to Singapore, Moscow, Kaohsiung, Melbourne, and Sydney.

What Happened

Vietnam Airlines released its Q2 2024 financial statements, revealing a consolidated net loss of over 600 billion VND for the quarter, the first quarterly loss since early 2024. The loss was attributed to a sharp increase in Jet A1 fuel prices, which drove cost of goods sold up nearly 59% to over 36,600 billion VND. Gross profit fell by more than 3,200 billion VND to approximately 1,700 billion VND.

However, on a cumulative basis, the airline reported a consolidated net profit of 3,852 billion VND for the first half of 2024, thanks to a strong Q1 performance that contributed over 4,500 billion VND in profit. This result exceeded management’s earlier cautious guidance in May, when they warned of a possible H1 loss due to high fuel costs. The company also highlighted operational growth, with over 80,000 flights and 13 million passengers carried in H1, including a 19% rise in international passengers.

Market Context

Vietnam Airlines (HVN) trades on HOSE and closed at 21,800 VND on July 30, 2026. The stock has been volatile amid the aviation sector’s recovery, with fuel costs remaining a key headwind. The H1 profit beat provides a positive catalyst, but the Q2 loss underscores ongoing margin pressure. The broader Vietnamese market has seen mixed sentiment, with travel and leisure stocks sensitive to fuel prices and international travel demand.

Strategic Significance

The H1 results demonstrate Vietnam Airlines’ ability to generate profitability on a half-year basis despite fuel cost volatility, driven by strong international traffic recovery and network expansion. The company’s plan to acquire 50 narrow-body aircraft (delivery 2030-2032) and lease 20 narrow-body aircraft (2027-2028) signals long-term capacity growth. Additionally, the entry into cargo operations with a freighter in Q3 2024 and infrastructure investment at Long Thanh International Airport position the airline for future growth. However, fuel price sensitivity remains a key risk, as evidenced by the Q2 loss.

What to Watch

• Q3 2024 earnings release for signs of continued profitability or further fuel cost impact.
• Jet A1 fuel price trends and any hedging strategies disclosed by management.
• Progress on aircraft delivery and leasing agreements, especially the 50 narrow-body order.
• International passenger traffic data for key routes, particularly new destinations.
• Updates on the Long Thanh airport investment and its impact on operational capacity.