Vietnam Airlines HVN Kept on Warning List as H1 Profit Drops 50%

Overview

HOSE has announced it will keep Vietnam Airlines (HVN) under a warning status due to accumulated losses exceeding VND 23,148 billion as of June 30, 2026. The airline’s H1 2026 net profit fell by about 50% year-on-year, primarily because of a 55% jump in average fuel prices. This regulatory update affects HVN, listed on HOSE, and signals ongoing financial strain despite operational improvements.

Key Facts

• HOSE issued Decision No. 592/QD-SGDHCM on July 10, 2026, maintaining the warning status for HVN.
• Accumulated undistributed after-tax losses stood at negative VND 23,148.19 billion as of June 30, 2026, based on reviewed semi-annual consolidated financial statements.
• Parent company H1 2026 after-tax profit was VND 2,875 billion, down VND 2,947 billion (approximately 50%) from H1 2025.
• Consolidated H1 2026 after-tax profit was VND 3,852 billion, down VND 2,590 billion (40.2%) year-on-year.
• Total revenue and other income for the parent company rose 19.15% in H1 2026, with international service revenue up 32.4% and domestic service revenue down 1.8%.
• Average fuel costs in H1 2026 increased 55% versus the same period in 2025, adding over VND 6,000 billion to costs.
• HVN shares closed at VND 22,500 on September 7, 2026.

What Happened

Ho Chi Minh City Stock Exchange (HOSE) announced on July 10, 2026, that it would keep Vietnam Airlines (HVN) under a warning status, citing accumulated losses of more than VND 23,148 billion as of June 30, 2026. The decision, signed by HOSE’s General Director, follows the reviewed semi-annual consolidated financial statements, which show the company still fails to meet the criteria for removal from the warning list under the listing regulations.

In its explanation, Vietnam Airlines attributed the sharp profit decline to a 55% surge in average fuel prices during the first half of 2026, which increased costs by over VND 6,000 billion. While total revenue and other income grew 19.15%, cost growth outpaced revenue, leading to a 50% drop in parent-company net profit. The company noted that Q1 results were strong, but Q2 was severely impacted by rising fuel prices stemming from Middle East tensions.

Market Context

HVN, listed on HOSE, closed at VND 22,500 on September 7, 2026. The stock has been under a warning status since earlier periods due to persistent accumulated losses, a legacy of the COVID-19 pandemic and subsequent operational challenges. The airline sector in Vietnam is recovering, but fuel price volatility remains a key risk. The warning status restricts certain trading activities, potentially affecting liquidity and investor sentiment.

Strategic Significance

For long-term investors, the maintained warning status underscores Vietnam Airlines’ ongoing balance-sheet weakness, even as it returns to profitability. The company’s ability to sustain positive net income is heavily dependent on fuel prices, which are outside its control. The airline has been implementing restructuring measures, including asset and capital restructuring, but the accumulated losses remain a significant hurdle. The warning status may persist until accumulated losses are substantially reduced, which could take several years given current profit levels. Investors should assess the company’s fuel hedging strategies and cost-management initiatives as key indicators of future performance.

What to Watch

• Quarterly earnings reports for H2 2026 to see if profit recovery continues and whether fuel costs stabilize.
• Any announcements regarding capital increases or asset sales aimed at reducing accumulated losses.
• HOSE decisions on lifting the warning status, which require accumulated losses to fall below a certain threshold.
• Developments in Middle East tensions and their impact on global fuel prices.
• Vietnam Airlines’ progress on restructuring plans, including fleet renewal and route optimization.