How fiercely do Vietjet and Vietnam Airlines compete in the trillion-dollar race?

The Vietnamese aviation market is requiring airlines to innovate, improve service quality, optimize costs, and prevent risks from fuel prices and exchange rates - Photo: BONG MAI

The business picture of Vietnam's two leading airlines has made great strides and faced many challenges.

Passenger transport accelerates, profits mixed

According to the financial report for the first quarter of 2025, Vietjet Aviation Joint Stock Company (stock code VJC) and Vietnam Airlines Corporation (stock code HVN, including Vietnam Airlines) both recorded impressive growth in passenger transport activities, thanks to the recovery of the domestic and international markets.

For Vietjet , transport revenue recorded more than 17,950 billion VND, up over 10% over the same period last year, with a total of 6.8 million passengers (+13%). Of which, the number of international passengers reached 2.7 million (+8%).

Vietnam Airlines was not far behind with transport revenue of VND24,330 billion (+8%), compared to the same period. The airline served 6.3 million passengers (+2%). The number of international passengers reached 2 million (+5%).

Thus, Vietjet has surpassed Vietnam Airlines in both domestic and international passengers, but Vietnam Airlines' revenue is higher.

Vietjet focuses on low prices and cost optimization, Vietnam Airlines focuses on services and a wide flight network - Photo: BONG MAI

In terms of profits, the two airlines also had opposite developments. Specifically, the airline operated by billionaire Nguyen Thi Phuong Thao officially recorded a net profit of VND640 billion in the first quarter of this year, an increase of more than 19% compared to the same period last year.

According to experts from VNDirect Securities Company, although lower than initial expectations, the company still showed improvement in core business operations.

Meanwhile, Vietnam Airlines achieved a net profit of more than VND3,400 billion, down nearly 22% compared to the same period last year. The main reason was that in the first quarter of last year, the airline had an unusual income from writing off debts payable to the lessor at Pacific Airlines, while in the first quarter of this year, this income no longer existed.

Excluding this unusual factor, Vietnam Airlines' core business profits still grew strongly.

Vietnam Airlines is larger than Vietjet in terms of revenue and profit - Chart: BONG MAI

Challenges in the trillion race

Looking at the business results of the first quarter of 2025, these two airlines also face many challenges.

According to information from VNDirect Securities, Vietjet is in a dispute with FW Aviation (a subsidiary of FitzWalter Capital) regarding aircraft leasing.

The UK Supreme Court ruled the airline must pay $181.8 million, Vietjet has been allowed to appeal and a hearing is scheduled to take place this month.

If the appeal fails, the company's equity value could drop significantly.

The airline's strengths lie in its flexibility and low-cost positioning, along with being among the top airlines in the Asia- Pacific region in terms of aircraft orders.

Vietnam Airlines faces the risk of limited growth and reduced market share due to difficulties in expanding its fleet.

To solve the problem, the unit has been approved by the Government to issue additional shares, with the goal of mobilizing a maximum of VND22,000 billion, divided into two phases.

Thus, the expected issuance of the first phase alone (VND 9,000 billion) will also help the enterprise bring its equity back to a positive level (by the end of the first quarter of 2025, it will be negative VND 5,850 billion).

Thereby, HVN shares have the opportunity to escape from control, creating conditions for businesses to access credit to purchase aircraft.

According to the recent explanation sent to the stock market management agency, the enterprise said it had completed the project to remove post-COVID-19 difficulties (2021 - 2035 period) and reported to the competent authority.

In the period of 2024 - 2025, the unit strives to increase adaptation and profitable business. Along with restructuring assets and financial investment portfolio, to increase income and cash flow.

On the stock exchange, VJC code slightly decreased to VND89,500/share in the last session of the week, recording an increase of about 4% weekly and a decrease of 24% yearly.

HVN code also stopped in the red with the price of 34,600 VND/share, but still received an increase of nearly 10% this week and an increase of more than 66% in the past year.

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Source: https://tuoitre.vn/vietjet-va-vietnam-airlines-so-ke-quyet-liet-ra-sao-tren-duong-dua-nghin-ti-2025050917275955.htm