Vietnam Airlines posts improved revenue and profit in 1H2019

posted on 16th July 2019 by Justin Burns
Vietnam Airlines posts improved revenue and profit in 1H2019

Vietnam Airlines Group has posted better consolidated revenue and pre-tax consolidated profit in the first six months of 2019 compared to the same six months in 2018.

The Group reported VND 51,662 billion (US$2.2 billion) in consolidated revenue, up 5.5 per cent on the same period last year and VND 1,650 billion in pre-tax consolidated profit, 30 per cent higher than planned.

Vietnam Airlines – the parent company – earned VND 38,328 billion in revenue, up 5.8 per cent year-on-year (YOY), and VND 1,787 billion in pre-tax profit, up 21.8 per cent YOY, 13.6 per cent higher than planned.

Over the course of six months, Vietnam Airlines flew over 13.9 million passengers, two per cent more than the same period in 2018, and over 180,000 tonnes of cargo, up 1.6 per cent YOY on 73,650 flights.

Vietnam Airlines Group (including Vietnam Airlines, Jetstar Pacific, and VASCO) carried approximately 51 per cent of the aggregate passenger volume.

These figures the Group said “reflect a robust performance” from Vietnam Airlines “amidst the slowdown in purchasing power growth, saturation of domestic market, surge in fuel price during the first five months, as well as fluctuation in the exchange rates between key payment currencies and USD”.

In the first half of the year, Vietnam Airlines put two widebody aircraft types, Airbus A350 and Boeing 787, into service on routes to South East Asian destinations and switched its operation in Moscow, Russia over to Sheremetyevo Airport from Domodedovo Airport.

As for its route network and fleet, Vietnam Airlines Group launched seven new domestic routes connecting Ho Chi Minh City to Chu Lai, Hanoi to Dong Hoi, and Danang to Thanh Hoa, Vinh, Da Lat, Phu Quoc, and Can Tho.

In the first half of 2019, Vietnam Airlines also welcomed eight narrowbody Airbus A321neos and two widebody Airbus A350s to its fleet, completing its total order of 14 Airbus A350s.

Having boosted the charter capital to more than VND 14,182 billion, Vietnam Airlines had its own shares (HVN) officially listed on the Ho Chi Minh Stock Exchange (HOSE) on 7 May, 2019.

In the second half of 2019, Vietnam Airlines said it plans to push for organisational restructuring. The carrier expects to complete its 20 narrow-body Airbus A321neo fleet, take delivery and operate the first three widebody Boeing 787-10s out of an order book of eight aircraft and finalise the investment plan of 50 narrowbody aircraft for the 2021-2025 period.