With the loss of loyal customers, what are airport ground handling units aiming for?

TPO - With Vietjet Air no longer serving as a customer, contributing nearly 40% of its revenue, Saigon Ground Services Joint Stock Company aims for consolidated revenue of VND 1,534 billion (down 0.7%) and consolidated after-tax profit of over VND 170 billion (down 18% compared to 2025).

Saigon Ground Services Joint Stock Company (stock code: SGN) has just announced the documents for its 2026 annual general meeting of shareholders. According to the documents, the company's business performance is under pressure as the total number of flights served by SGN in 2025 is expected to decrease compared to 2024. The main reason stems from the company ceasing to provide services to Vietjet Air (stock code: VJC) at Tan Son Nhat International Airport.

Therefore, SGN focuses on market expansion and developing new customers, notably by signing ground handling contracts with several new airlines, including Sun PhuQuoc Airways, at all three airports: Tan Son Nhat, Da Nang , and Cam Ranh.

In the first quarter of this year, SGN recorded net revenue of over VND 388 billion (down 7% compared to the same period last year), and after-tax profit of over VND 71 billion (down 8.5% compared to Q1/2025).

According to SAGS, the decline in profits is due to Vietjet Air – a partner that contributed nearly 40% of revenue in 2024 – ending its cooperation at Tan Son Nhat Airport. Specifically, Vietjet Air began providing its own ground handling services from April 20, 2025, and will further cease using the company's international apron services from November 1, 2025.

Therefore, in 2026, SGN aims for consolidated revenue of VND 1,534 billion (a decrease of 0.7%) and consolidated after-tax profit of over VND 170 billion (a decrease of 18% compared to the 2025 performance). This is the lowest profit target in the past four years.

Saigon Ground Services' business performance is under pressure.

Saigon Ground Services plans to present to shareholders a dividend distribution plan for 2025 in cash at a rate of 25%, equivalent to nearly 84 billion VND. For 2026, SGN proposes a dividend of 20% in cash.

According to SGN, in 2026 the aviation industry will continue to benefit from economic growth and the expansion of domestic aviation infrastructure. However, Saigon Ground Services also acknowledges that global economic fluctuations and geopolitical tensions will continue to affect supply chains, trade activities, and international travel demand. Some airlines have had to adjust their operational plans, reduce frequencies, or change flight schedules, directly impacting the operations of businesses in the aviation service supply chain.

Furthermore, fluctuations in oil prices and the risk of disruptions to aviation fuel supply continue to put significant pressure on the entire industry. SGN also noted that foreign exchange rate fluctuations can directly affect equipment investment costs, operating costs, and the efficiency of production and business operations.

To implement its 2026 plan, the SGN management board stated that it will focus on cost control and enhancing the application of information technology in management and flight operations. At the same time, the company will intensify its efforts to acquire new customers and develop new services to increase revenue.

Notably, SGN has prioritized expanding its business operations at Long Thanh International Airport as the airport prepares to begin commercial operations.

Currently, Saigon Ground Services is implementing a key project: the construction and operation of repair and maintenance services for aviation equipment and vehicles, as well as ground technical and commercial services at Long Thanh International Airport No. 2. A new legal entity has been established: Saigon Ground Services - Long Thanh Co., Ltd., with SGN holding a 75% stake and Hanoi Ground Services Joint Stock Company (stock code: HGS) contributing the remaining 25%.

Saigon Ground Services Joint Stock Company operates in the aviation services sector, including the operation of airport infrastructure and equipment; providing aircraft maintenance services, spare parts, and aviation equipment; and providing ground technical and commercial services.

Saigon Ground Services Joint Stock Company and Hanoi Ground Services Joint Stock Company both have capital contributions from Vietnam Airports Corporation (stock code: ACV) with ownership ratios of 48.03% and 20% respectively. In addition, Vietjet Airlines also holds 9.11% of SGN's capital.

Source: https://tienphong.vn/mat-khach-ruot-don-vi-phuc-vu-mat-dat-san-bay-dat-muc-tieu-ra-sao-post1847821.tpo