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Vietnam Airlines' Q1 consolidated revenue up 4.3%

Released at: 20:33, 19/04/2019

Vietnam Airlines' Q1 consolidated revenue up 4.3%

Photo: Vietnam Airlines

Pre-tax profit in first quarter represents 45% of annual plan, according to report from carrier.

by Ngoc Lan

Vietnam Airlines will put ten Airbus A321neo aircraft into service in the second quarter of this year and prepare to take delivery of its first Boeing 787-10 as part of its wide-bodied fleet development program, according to a report from the national flag carrier released on April 19.

Consolidated revenue increased 4.3 per cent year-on-year in the first quarter, reaching VND26 trillion ($1.1 billion), while consolidated pre-tax profit was VND1.5 trillion ($64.6 million), representing 45 per cent of the annual plan.

Vietnam Airlines’ revenue was estimated at VND19.34 trillion ($833 million), up 5.5 per cent year-on-year while pre-tax profit stood at more than VND1.2 trillion ($51.7 million), up 36.6 per cent.

The carrier posted positive financial indicators, with a debt-to-equity ratio of 2.41; lower than at the beginning of the year (2.58) and fueled by balanced cash flows and an effective payment plan.

Passenger numbers rose 2.5 per cent year-on-year in the first quarter, reaching 5.4 million on 33,500 flights, up 2 per cent.

Vietnam Airlines and its member airlines hold a domestic market share of 52 per cent. On time performance (OTP) was 90 per cent, placing them among the leading airlines in the world.

The first quarter also saw 50 per cent of all passengers using online check-in via its website, mobile app, and digital check-in kiosks at the two largest airports in the country - Noi Bai in Hanoi and Tan Son Nhat in Ho Chi Minh City.

Its results reflect its investment in advanced technologies, which help to enhance the passenger experience and ease pressure on airport infrastructure.

Ensuring the effective use of resources and operational flexibility were the foundation for Vietnam Airlines to develop its business in the first quarter. As part of expansions to its domestic network, it introduced new routes between Ho Chi Minh City and Chu Lai in central Quang Nam province, central Da Nang city and Can Tho in the Mekong Delta, and Da Nang and Vinh in north-central Nghe An province. 

In its quest for excellence, Vietnam Airlines continues to improve all areas of its business, with one major element being its new-generation aircraft fleet. One wide-bodied Airbus A350-900 and two narrow-bodied Airbus A321neo aircraft have recently joined its fleet to serve growing travel demand. 

The first quarter also saw Vietnam Airlines’ expand its cooperation in the international market, including setting up a joint venture to provide component maintenance, repair and overhaul solutions with Singapore Technologies Aerospace and expanding its strategic relationships with leading technology provider the Sabre Corporation and Cambodia’s Ministry of Tourism for the 2019-2021 period. This is testament to its commitment to mastering advanced technology and its vital role in Vietnam’s political, economic and social spheres.

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