Vietnam Airlines is set to raise its charter capital by VNĐ22 trillion (or US$880 million) over the next two years, with VNĐ9 trillion to be injected in 2025 and an additional VNĐ13 trillion in 2026, marking a significant step in the national carrier’s restructuring and growth strategy.

Earlier, the national flag carrier held an extraordinary general shareholders’ meeting to discuss and approve key decisions related to capital restructuring and long-term development.

Reporting at the meeting, Chairman of the Board of Directors Đặng Ngọc Hòa, said Vietnam Airlines recorded revenue of VNĐ112.78 trillion in 2024, eight per cent higher than the annual target. Net consolidated after-tax profit reached a record high of VNĐ7.96 trillion, the best financial result in the airline’s history.

The momentum continued into the first quarter of 2025, with estimated consolidated pre-tax profit of nearly VNĐ3.63 trillion. The airline transported 6.2 million passengers during the period, a 6.7 per cent increase year-on-year.

According to airline representatives, 2025 marks a pivotal year as the company transitions into a new phase of growth.

The planned capital increase will be implemented in two phases, with the first tranche of VNĐ9 trillion scheduled for 2025, followed by VNĐ13 trillion in 2026. This capital boost is expected to bring Vietnam Airlines out of negative equity, strengthen its financial position, improve competitiveness and lay the foundation for sustainable development.

Speaking about the capital raising plan, airline CEO Lê Hồng Hà said the company intends to issue 900 million new shares to existing shareholders at VNĐ10,000 per share, amounting to VNĐ9 trillion in total at par value.

The offering is expected to take place at the end of 2025. Existing shareholders may transfer their rights to buy shares to domestic individuals and organisations, but this will be limited to a single transfer. The proceeds from the sale will be used to fund the airline’s core operations.

“The capital increase will enhance Vietnam Airlines’ liquidity, strengthen financial indicators, and reduce debt ratios. This will enable the carrier to access more favourable financing sources, expand its fleet, improve service quality and execute its long-term strategies,” the airline stated.

Regarding the investment plan for 50 narrow-body aircraft, board member Tạ Mạnh Hùng noted that this project was first submitted to relevant authorities in 2017 but was put on hold due to the COVID-19 pandemic. It is now being revisited as part of the airline’s broader recovery and development agenda. — VNS

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