Vietnam Airlines expects to incur losses in the second quarter of this year, primarily due to sharply rising Jet A1 aviation fuel prices. This projected downturn would erase the record profit of over 4.500 billion VND achieved in the first quarter, resulting in a net loss for the first half of 2026. Dinh Van Tuan, Deputy General Director of Vietnam Airlines, shared this information at a seminar on aviation and tourism stimulus solutions hosted by Tien Phong Newspaper on 15/5.

Since March, the global aviation industry has faced challenges as Jet A1 fuel prices have surged, at times reaching three times the planned cost. This presents a challenge for Vietnam Airlines and other domestic carriers.

For the national flag carrier, Tuan stated that every 1 USD increase in fuel price adds 300 billion VND in annual operating costs. He projected that if current operational output is maintained, Vietnam Airlines could face a loss of 30.000 billion VND in 2026.

Deputy General Director of Vietnam Airlines Dinh Van Tuan. Photo: Tien Phong Newspaper

Vietnam Airlines' leadership reported a record consolidated profit of 4.500 billion VND in Q1, a 30% increase compared to the same period in 2025. This was largely driven by the Tet peak season and expanded European routes. However, the airline explained that fuel price volatility from the Middle East conflict did not affect its operations during the first three months of the year. The corporation anticipates facing operational pressure and narrowed profit margins from Q2 through the end of the year.

Before this, Vietnam Airlines had halted its string of losses caused by Covid-19 since early 2024. The airline recorded a profit after tax of 7.957 billion VND in 2024 and continued to achieve a profit of 7.607 billion VND in 2025.

Tuan expressed hope for an early resolution to the Middle East conflict, which would allow the aviation market to stabilize as it did in Q1. He noted that the situation in June is expected to be difficult, with current Jet A1 prices around 160 USD per barrel, exceeding the planned price by 70-80 USD.

To adapt to market fluctuations, Vietnam Airlines has developed flexible operational scenarios and is optimizing its flight network on key domestic and international routes.

According to the Civil Aviation Authority of Vietnam (CAAV), from April to early May, the global aviation fuel market continued to be impacted by the Middle East conflict. The CAAV stated that Vietnam is among the nations dependent on imported aviation fuel, facing a higher degree of risk. It emphasized the need to implement measures to coordinate and optimize domestic supply if the crisis persists.

Given the continued instability in supply and persistently high Jet A1 prices, the CAAV indicated that airlines are expected to continue adjusting their operational plans cautiously, while also intensifying cost optimization measures in the coming period.

Anh Tu