Profit takes-off in first half of 2018 at Vietnam Airlines

posted on 17th August 2018 by Justin Burns
Profit takes-off in first half of 2018 at Vietnam Airlines

Vietnam Airlines recorded a profit rise of 87 per cent in the first half of the year compared to the same period last year – pocketing $82.4 million (VND 1.92 trillion) since January 2018.

The airline said it maintained its performance due to increased operational flexibility in the transportation of passengers and cargo, given stagnation in the development of air transport markets and rising fuel prices at an average of $82/barrel.

Vietnam Airlines’ total consolidated revenue was estimated at $2.1 billion (VND 49.8 trillion) while the parent company’s revenue was estimated at nearly $1.6 billion (VND 36.3 trillion). The Group’s pre-tax consolidated profit reached $57.8 million (VND 1.39 trillion), more than double the planned figure.

In the first six months of 2018, Vietnam Airlines operated 72,800 flights with an on-time performance of 90 per cent; and transported 13.7 million passengers – an increase of four per cent compared to the same period last year.

Cargo reached 167,000 tonnes, up 8.5 per cent over the same period, and close to 100 per cent of the planned targets for both the international and domestic markets.

Technology the carrier said has not only provided the most convenient services for passengers, but also contributed to reducing the pressure on airport infrastructure. The rate of self-check-in at Tan Son Nhat, Noi Bai and Da Nang airports has reached high levels, at 42.4 per cent, 39 per cent and 29.2 per cent respectively.

On 22 May 2018, Vietnam Airlines completed the auction of purchase rights for additional shares of the State. This year to date has also seen the airline continue to enhance its cooperation with Japan’s largest airline strategic partner ANA Holding.

According to AAPA, the productivity of Vietnam Airlines in terms of passenger numbers is one of the top three airlines globally with enhanced service quality, proving positive outcome of the selected method.

In the last six months of 2018, the air transport market is predicted to continue to slow down as fuel prices have not shown signs of decline. Vietnam Airlines said it has implemented several solutions to save fuel and improve technical capacity.

From July to December 2018, Vietnam Airlines is looking into the feasibility of operating regional aircraft to fly short local routes such as Hanoi – Vinh / Dien Bien / Dong Hoi and Ha Noi – Con Dao – Ho Chi Minh City along with ATR72 aircraft, to meet increasing customer demand.

In the last six months of 2018, Vietnam Airlines said it will also increase charter capital by issuing more shares to existing shareholders. HVN shares will be listed on Ho Chi Minh City Stock Exchange (HOSE).

These are effective actions are to proactively guarantee credit capital for Vietnam Airlines investment projects well as to reduce State ownership during 2019-2020 period.