Vietnam Airlines JSC has become the world’s top-performing airline stock in 2024, surging 179% due to a post-pandemic recovery and a surprise return to profit. This marks a significant turnaround from its recent risk of insolvency and potential delisting from the Ho Chi Minh Stock Exchange. The state-owned carrier’s rebound has outshone regional competitors like Singapore Airlines and Air China.
PYN Fund Management predicts record revenue and profit for Vietnam Airlines this year. The carrier benefits from a resurgence in travel demand, especially from China, its largest pre-pandemic market. However, challenges remain, including macro-economic uncertainties and a need to balance revenue and spending.
Despite its recent success, Vietnam Airlines remains a smaller player with a market value of $3 billion. The airline targets an after-tax profit of 4.2 trillion dong in 2024, following a loss of 5.6 trillion dong in 2023. Future expansion may face hurdles such as aircraft shortages and domestic demand volatility.