Vietnam Airlines faces profit drop due to rising fuel costs

Vietnam Airlines faces significant financial pressure due to rising fuel costs. According to a report by BSC Securities, the national carrier may achieve record revenue in 2026, yet its profits are projected to plummet by as much as 85% compared to 2025 levels.

In the second quarter of 2026, while net revenue rose 37% to 38,303 billion VND driven by increased international passenger numbers, the airline shifted from a profit to a loss of 792 billion VND. This downturn is primarily attributed to the surge in Jet A1 fuel prices caused by tensions in the Middle East.

BSC Securities notes that Vietnam Airlines requires Jet A1 prices to remain below 135 USD per barrel to operate effectively. However, recent tracking showed prices reaching 171 USD per barrel, significantly exceeding the threshold for profitability.