According to the Civil Aviation Authority of Vietnam, air transport recorded a significant rebound in the first six months of 2025, with passenger volume rising 9.1% year-on-year to an estimated 59.7 million passengers.

Of this, international travelers reached 22.9 million, up 12.9%, while domestic passengers totaled 36.8 million, up 6.9%.

The expansion and upgrade of domestic aviation infrastructure have also been gaining momentum. Fuel costs, a key operational expense, eased during Q2. The average Brent crude oil price fell to $65 per barrel, down 11% from the previous quarter and 22% compared to Q2/2024, creating a favorable cost environment for airlines. These conditions set the stage for strong Q2 financial results across the aviation sector.

Vietnam Airlines reports surging profit

Vietnam Airlines (HoSE: HVN) posted after-tax profit of over VND2.92 trillion ($111.45 million) in Q2, an increase of VND1.89 trillion compared to the same period last year, according to its newly released consolidated financial statement for Q2/2025.

The flag carrier attributed this result to the fact that Q2 was a peak business period for the aviation industry and the corporation implemented strong operational measures, such as optimizing and improving fleet and workforce efficiency, and minimizing costs.

In particular, the surge in customer demand significantly boosted the corporation’s profit compared to Q2/2024. Gross profit from sales and services reached over VND3.93 trillion ($150 million), equivalent to 17.32% of revenue.

Cumulatively in H1, Vietnam Airlines recorded over VND58.68 trillion ($2.24 billion) in revenue, up 10% year-on-year, and a pre-tax profit of VND6.68 trillion ($255 million), a rise of 19.3%.

Vietjet delivers strong growth and cash flow turnaround

Vietjet Aviation JSC (HoSE: VJC) also reported impressive Q2 results, with revenue of VND17.89 trillion ($680 million) and after-tax profit of VND653 billion ($24.82 million), up 10% and 121% year-on-year, respectively.

The low budget airline’s net profit margin held steady at 13.5%, thanks to high passenger volume, effective cost control, and lower jet fuel prices.

Notably, cash flow from operating activities (CFO) turned positive, reaching VND470 billion ($17.86 million), a sharp improvement from negative VND3.75 trillion in Q2/2024. This was driven by improved profitability and better working capital management.

In H1/2025, Vietjet posted consolidated revenue of VND35.84 trillion ($1.36 billion) and after-tax profit of VND1.29 trillion ($49 million), up 5% and 55% year-on-year, respectively.

Airport service providers see gains

Airport logistics companies benefited from the surge in international passenger volumes and the ongoing recovery in domestic travel.

Saigon Cargo Service Corporation (HoSE: SCS), the leading cargo handler at Tan Son Nhat Airport in Ho Chi Minh City, reported Q2 revenue of VND292 billion ($11.1 million), up 10% year-on-year. Its pre-tax profit reached VND236 billion, a 10.6% increase.

For H1, SCS logged revenue of VND558 billion ($21.2 million) and pre-tax profit of VND449 billion, achieving 48% and 52% of its yearly revenue and profit goals, respectively.

Similarly, Noi Bai Cargo Terminal Services JSC (HoSE: NCT) reported Q2 revenue of VND280 billion ($10.64 million), up 28% year-on-year, and net profit of VND85 billion, up 35%.

NCT attributed the strong performance to Vietnam’s economic growth rate of 7.52% in H1 2025, the highest first-half GDP growth recorded in the 2011-2025 period.

For the first half of the year, the company posted revenue of VND522 billion ($19.8 million) and after-tax profit of VND150 billion, completing 52% and 55% of its annual revenue and profit plans.

H2 outlook remains positive

Analysts at KIS Vietnam Securities expected several tailwinds to support the aviation sector in the second half of 2025.

Following Resolution 44/NQ-CP, which extended visa-free stays for citizens of 12 countries, Resolution 229/NQ-CP has expanded the program to cover 12 more nations, building on earlier exemptions granted to the Czech Republic, Switzerland, and Poland.

“We expect this policy to boost European tourist arrivals to Vietnam, benefiting airport operators and aviation service providers. However, the impact on airlines will likely be limited, as neither Vietjet nor Vietnam Airlines currently operate direct flights to these markets,” KIS noted in a report.

Regarding outbound travel, demand for Southeast Asia and Australia has softened, while that to Northeast Asia, especially China, is gaining momentum and is expected to remain strong in H2.

Following the success of the April 30-May 1 parade in HCMC, the Government plans another major parade marking the National Day (September 2) in Hanoi. KIS believed this will again stimulate domestic travel demand, particularly as airlines expand seat capacity and benefit from low fuel costs, keeping ticket prices competitive.

In conclusion, with fuel prices remaining low, a strong summer travel season, and improving operating efficiency, both Vietjet and Vietnam Airlines are expected to further enhance profit margins in the latter half of 2025.