Vietnam Airlines (HVN) Kept on Warning List as Losses Top VND 23 Trillion

Overview

Vietnam Airlines (HVN), the national flag carrier listed on HoSE, remains under a warning status due to accumulated losses exceeding VND 23 trillion as of June 30, 2026. Despite reporting positive net profit in the first half of 2026, the company’s retained earnings are still deeply negative, preventing its removal from the warning list.

Key Facts

• HoSE issued Decision No. 592/QĐ-SGDHCM on July 10, 2026, maintaining the warning status for HVN shares.
• Accumulated undistributed after-tax losses stood at negative VND 23,148.19 billion as of June 30, 2026, based on reviewed consolidated financial statements.
• HVN’s parent company after-tax profit for H1 2026 was VND 2,875 billion, down VND 2,947 billion (approximately 50%) year-on-year.
• Consolidated after-tax profit for H1 2026 reached VND 3,852 billion, a decrease of VND 2,590 billion (40.2%) compared to H1 2025.
• Total revenue and other income for the parent company increased 19.15% year-on-year, while total costs rose 28.75%, driven by a 55% surge in average fuel costs.
• International service revenue grew 32.4%, while domestic service revenue declined 1.8%.
• The warning status is based on Article 40, Point b, Clause 4 of the Listing Regulations issued under Decision No. 22/QĐ-HĐTV dated March 16, 2026.

What Happened

Ho Chi Minh City Stock Exchange (HoSE) announced it would keep Vietnam Airlines’ shares (HVN) under a warning status, citing the company’s accumulated losses as of June 30, 2026. The decision, signed by HoSE’s General Director on July 10, 2026, follows the reviewed semi-annual consolidated financial statements, which showed undistributed after-tax losses of VND 23,148.19 billion.

In its explanation, Vietnam Airlines attributed the sharp decline in H1 2026 profitability to a 55% increase in average fuel prices compared to the same period last year, which pushed up cost of goods sold by over VND 6,000 billion. While total revenue and other income rose 19.15%, total costs increased faster at 28.75%, squeezing margins. The company noted that Q1 2026 was strong, but Q2 was heavily impacted by surging fuel prices stemming from the Middle East conflict.

Market Context

HVN shares closed at VND 22,500 on September 7, 2026, on the HOSE. The stock remains under the warning designation, which restricts certain trading activities and can affect investor sentiment. The airline sector in Vietnam has been recovering from the pandemic, but fuel price volatility and geopolitical tensions continue to pose challenges. Vietnam Airlines’ persistent accumulated losses highlight the long road to financial rehabilitation despite operational improvements.

Strategic Significance

For long-term investors, the warning status is a key indicator of Vietnam Airlines’ financial health. The company’s ability to generate positive net profit is encouraging, but the massive accumulated losses mean it will take years to restore equity and potentially exit the warning list. The airline’s strategic focus on international routes, which saw 32.4% revenue growth, and its cost-control measures will be critical. However, the heavy reliance on fuel prices, which are beyond its control, underscores the need for hedging strategies and operational efficiency. The outcome of ongoing restructuring efforts, including asset and capital reallocation, will determine whether HVN can eventually meet the criteria for lifting the warning.

What to Watch

• Full-year 2026 audited financial results, expected early 2027, to see if accumulated losses narrow further.
• Quarterly earnings releases for Q3 and Q4 2026 to assess the impact of fuel price movements and seasonality.
• Any announcements regarding fuel hedging policies or strategic partnerships that could mitigate cost pressures.
• Regulatory updates from HoSE or the State Securities Commission regarding changes to warning status criteria.
• Progress on the company’s restructuring plan, including asset sales or capital increases, as outlined in its explanations.