05:22 (GMT +7) - Wednesday 17/07/2019

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Vietnam Airlines' 2018 profit at $120mn

Released at: 14:55, 02/01/2019

Vietnam Airlines' 2018 profit at $120mn

Photo: Vietnam Airlines

Profit figure 15% higher than target.

by Ngoc Lan

Vietnam Airlines has announced it recorded VND2.8 trillion ($120 million) in profit in 2018, exceeding the target by 15 per cent.

The carrier saw another year of growth and innovation due to robust demand for air travel, optimized operational efficiency, and enhanced control, together with the implementation of market-driven solutions amid higher fuel prices.

Vietnam Airlines and its member airlines (including Jetstar Pacific and VASCO) generated total consolidated revenue of approximately VND102 trillion ($4.3 billion).

The national flag carrier recorded VND73.5 trillion ($3.1 billion) in revenue and more than VND2 trillion ($85.8 million) in pre-tax profit, while State budget contributions were some VND6.6 trillion ($283.2 million).

It carried over 22 million passengers on 142,000 flights in 2018 and transported 350,000 tons of cargo, and was among the world’s leading airlines in regard to on-time performance, scoring an OTP of 90 per cent on average.

The airline made significant progress in modernizing its fleet and investing in technology, with two wide-bodied Airbus A350 and three narrow-bodied A321neo aircraft. The airline has been recognized by Skytrax as a four-star airline for three consecutive years.

Mr. Duong Tri Thanh, President and CEO of Vietnam Airlines, said its strong earnings performance capped another year of extraordinary achievements. “We made significant progress in several key initiatives in 2018, including improved human resources management, an enhanced product portfolio, and a better on-time-performance index,” he said. “2018’s success offers an unparalleled opportunity for Vietnam Airlines to unlock further growth and bolster service quality.”

In 2019, it will continue to complete remaining procedures relating to equitization, such as increasing its charter capital and transferring to the Ho Chi Minh Stock Exchange, completing its fleet development plan for 2021-2025 and vision to 2030, incorporating new digital industrial technology in Industry 4.0, synchronizing its IT systems, and leveraging its digital business.

As a member of the global airline alliance SkyTeam, Vietnam Airlines is Vietnam’s national flag carrier and a major carrier in Southeast Asia, operating 94 flights to 21 domestic and 29 international destinations with an average of 400 flights per day, connecting the world’s major cities with mesmerizing travel destinations in Vietnam, Laos, Cambodia and Myanmar.

Vietnam Airlines was also named “Asia Pacific Airline of the Year” by CAPA in 2017 and has received several awards at the World Travel Awards, including “World’s Leading Airline - Premium Economy Class” and “World’s Leading Cultural Airline” (2017 and 2018) and “Asia’s Leading Airline - Economy Class” and “Asia’s Leading Cultural Airline” (2016). Vietnam Airlines aims to achieve five-star status and become a major airline in Asia.

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