Vietnam Airlines posts $11mn Q3 loss at parent-company level as fuel costs surge 61%

Specifically, the parent carrier's fuel expenses increased by VND4,360 billion (about $169.4 million) year on year, exceeding the VND3,785 billion ($147 million) rise in revenue and other income, according to the airline's financial report.

As a result, the parent carrier posted an after-tax loss of VND284 billion (around $11 million), compared with an after-tax profit of VND412 billion ($16 million) in the same period last year.

In an explanation accompanying its financial report, Vietnam Airlines said sharp fuel price fluctuations, driven by geopolitical tensions in the Middle East, had affected its business operations in both the second and third quarters.

Revenue from the parent carrier's international operations rose nearly 27 percent year on year, while revenue from its domestic operations fell 8.4 percent.

However, on a consolidated basis, Vietnam Airlines and its subsidiaries recorded net revenue of VND39,078 billion ($1.52 billion) in the third quarter, up 28.7 percent year on year.

The cost of goods sold climbed to VND36,212 billion ($1.40 billion), leaving gross profit at VND2,867 billion ($111.2 million), down 24.6 percent.

The group's gross profit margin narrowed to 7.3 percent from 12.5 percent a year earlier.

Financial revenue more than doubled to VND634 billion ($24.6 million), while financial expenses fell 41 percent to VND526 billion ($20.4 million).

Against this backdrop, the airline group posted a consolidated after-tax profit of VND319 billion ($12.4 million) in the third quarter, down 56.4 percent from VND732 billion ($28.4 million) in the same period last year.

In the first nine months of 2026, Vietnam Airlines' consolidated revenue reached VND114,480 billion ($4.44 billion), up 28 percent year on year, while consolidated after-tax profit fell 41.8 percent to VND4,172 billion ($161.8 million), from VND7,174 billion ($278.2 million) in the same period last year.

The nine-month revenue figure was equivalent to 82.4 percent of the airline's full-year 2026 target of VND138,899 billion ($5.39 billion).

During the period, the airline operated more than 122,000 flights and carried over 20 million passengers, up 4.3 percent year on year.

Cargo and parcel shipments totaled 274,000 metric tons, up nine percent.

After opening routes linking Hanoi with Amsterdam (the Netherlands), Ho Chi Minh City with Phuket (Thailand) and Colombo (Sri Lanka), Vietnam Airlines announced the launch of three more international routes in the fourth quarter: Hanoi-Ahmedabad (India), Hanoi-Hangzhou (China) and Da Nang-Singapore.

Under its sustainable development plan for 2021-35, the airline will restructure its assets and financial investment portfolio.

From 2026 to 2030, it plans to focus resources on its aircraft fleet, technical infrastructure at Long Thanh International Airport in Dong Nai City, and digital transformation.