Vietnam Airlines (HVN) Posts VND 1.33T H1 Loss Despite 47% Revenue Growth

Overview

Vietnam Airlines Joint Stock Company (HVN) reported a consolidated net loss of VND 1.331 trillion for the first half of 2023, despite a 47% year-on-year surge in revenue to over VND 44 trillion. The national flag carrier is advancing a restructuring plan that includes a future equity capital increase, while its shares on the Ho Chi Minh City Stock Exchange (HOSE) are under trading restrictions due to a delay in submitting its 2022 audited financial report.

Key Facts

• H1 2023 consolidated net loss: VND 1.331 trillion, a 75% reduction compared to H1 2022.
• H1 2023 consolidated revenue: Over VND 44 trillion, up 47% year-on-year.
• Q2 2023 revenue: VND 20.696 trillion, up 12.3% year-on-year, marking the 7th consecutive quarter of year-on-year growth.
• Q2 2023 gross profit: VND 929 billion, the second consecutive profitable quarter at the gross level.
• HOSE imposed trading restrictions on over 2.2 billion HVN shares (worth approx. USD 1.3 billion) from July 12, 2023, due to the delayed 2022 audited financial report.
• The company has completed its 2021-2025 restructuring plan, which includes preparing for a future shareholder capital increase.
• The delayed financials also forced the cancellation of the shareholder list finalization for its 2023 Annual General Meeting of Shareholders, originally scheduled for mid-July.

What Happened

According to its Q2 2023 financial statements, Vietnam Airlines (HVN) achieved significant top-line growth but remained in the red at the net level. For the first six months of 2023, consolidated revenue exceeded VND 44 trillion, driven by a recovery in key international markets like Europe, Australia, and the US, where transport output increased 23.6%. This led to a second consecutive quarter of gross profit, with Q2 2023 gross profit reaching VND 929 billion. However, after accounting for all expenses, the company recorded a consolidated net loss of VND 1.331 trillion for H1 2023.

The company stated that the H1 2023 net loss represents a 75% improvement compared to the same period in 2022. This improvement was attributed to profitable operations at subsidiaries and reduced losses at transport enterprises. Separately, the Ho Chi Minh City Stock Exchange (HOSE) announced trading restrictions on HVN shares from July 12, 2023, citing the company’s failure to submit its audited 2022 financial statements on time. This delay also caused the cancellation of the shareholder list finalization for its 2023 AGM.

Market Context

HVN shares trade on the Ho Chi Minh City Stock Exchange (HOSE). The stock closed at VND 22,000 on April 14, 2026, with a trading volume of 581,300 shares. The aviation sector in Vietnam has been recovering from the pandemic, but carriers like Vietnam Airlines continue to face challenges from high operational costs and legacy debt. The trading restrictions imposed by HOSE due to the reporting delay add a layer of regulatory and liquidity risk for current shareholders.

Strategic Significance

The core strategic challenge for Vietnam Airlines is to translate robust revenue recovery into sustainable net profitability. The 2021-2025 restructuring plan, now completed and submitted for approval, is central to this effort. Its focus on asset and financial portfolio restructuring, alongside preparing for a capital increase, indicates a long-term strategy to repair its balance sheet, specifically addressing negative consolidated equity. Success hinges on its ability to manage costs relative to revenue growth and execute the capital raise to strengthen its financial foundation.

What to Watch

• Official approval and subsequent details of the shareholder capital increase plan.
• Submission of the delayed audited 2022 financial statements and the lifting of HOSE trading restrictions.
• Rescheduling and outcomes of the 2023 Annual General Meeting of Shareholders.
• Q3 2023 financial results to see if the trend of gross profitability continues and net losses narrow further.
• Updates on the implementation of specific measures under the 2021-2025 restructuring plan.