HANOI: National flag carrier Vietnam Airlines is aiming to remain profitable in 2026 despite mounting pressure from higher jet fuel prices, exchange rate fluctuations and rising operating costs, while pursuing an ambitious expansion and restructuring programme.
Speaking at the airline’s AGM of shareholders on Sunday, Le Hong Ha who is president and chief executive officer said 2026 marks the first year of Vietnam Airlines’ long-term development strategy for 2026 to 2035, which is being implemented against an increasingly uncertain global economic and geopolitical backdrop.
The airline has been particularly affected by sharp increases in aviation fuel prices driven by tensions in the Middle East.
At one point, Jet A1 fuel exceeded US$200 per barrel, significantly increasing operating costs across the aviation industry.
Vietnam Airlines estimates the average Jet A1 price for 2026 at US$128.54 per barrel, up nearly 48% from 2025.
Based solely on fuel price movements, excluding changes in exchange rates or passenger demand, the airline expects an additional 11.9 trillion dong in fuel costs compared with last year.
The national carrier is also facing pressure from foreign-exchange volatility, higher global maintenance and logistics costs, as well as increasing expenses related to environmental compliance and green transition.
“Since April, our operations have been significantly affected by rising fuel prices resulting from the conflict in the Middle East, placing considerable pressure on our business performance,” Ha said.
To mitigate these challenges, Vietnam Airlines has developed flexible operating scenarios, optimised its domestic and international route network, tightened cost controls and improved fleet utilisation.
Despite the headwinds, the airline remains committed to achieving its 2026 business targets while strengthening its competitiveness, supporting economic growth and promoting trade, tourism and international connectivity.
During the first half of the year (1H26), Vietnam Airlines launched or announced new international services to Amsterdam, Phuket and Colombo, while increasing frequencies on routes to Singapore, Manila, Moscow, Kaohsiung, Melbourne and Sydney to meet rising travel demand.
The carrier is also implementing a range of strategic initiatives to expand capacity and improve operational efficiency.
These include an investment plan for 50 new narrow-body aircraft, scheduled for delivery between 2030 and 2032, alongside the lease of 20 additional narrow-body aircraft for 2027 to 2028.
Vietnam Airlines also plans to introduce its first dedicated cargo aircraft in the third quarter of 2026 (3Q26) and continue expanding technical infrastructure at key airports, including Long Thanh International Airport.
Following the reopening of the Strait of Hormuz and a ceasefire agreement between the United States and Iran in June, jet fuel prices have eased to around US$112 to US$115 per barrel, offering some relief.
Assuming fuel prices average around US$120 per barrel in 2H26, Vietnam Airlines forecasts pre-tax profit of 101 billion dong for the parent company and 510 billion dong on a consolidated basis.
“Although these figures are significantly lower than our 1Q26 performance, they reflect our strong efforts to optimise costs and respond to an exceptionally challenging operating environment.
“This has been marked by rising input costs, supply chain disruptions, geopolitical uncertainty and intensifying market competition,” Ha said.
To address aircraft shortages, the airline has adjusted flight frequencies to better match market demand while protecting its core domestic network.
Vietnam Airlines Group, comprising Vietnam Airlines, Pacific Airlines and Vasco, will continue to focus on maintaining its market share on key trunk routes while increasing capacity on leisure destinations.
For 2026, the airline targets carrying 27.73 million passengers and 361,400 tonnes of cargo, representing year-on-year increases of 8.1% and 6.2%, respectively. Consolidated revenue is projected to reach 138.9 trillion dong, up more than 12% from last year.
Chairman Dang Ngoc Hoa said the airline would continue restructuring its organisation, streamlining business processes and strengthening its workforce, including pilots, cabin crew and engineers, to support anticipated double-digit growth in the coming years. — Viet Nam News/ANN
