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Vietnam Airlines' revenue and profit continue skywards

Released at: 14:58, 11/01/2018 BUSINESS SPOTLIGHT

Vietnam Airlines' revenue and profit continue skywards

Photo: Vietnam Airlines

Impressive figures posted in national flag carrier's 2017 report.

by Ngoc Lan

Revenue and profit at Vietnam Airlines again grew strongly in 2017, according to its latest report.

The national flag carrier and its member carriers, including Jetstar Pacific and VASCO, conducted nearly 180,000 safe flights transporting 26.5 million passengers, an increase of 6.7 per cent against 2016.

Cargo shipments were estimated at 343,000 tonnes, up 19 per cent. Domestic market share averaged 60 per cent and international market share 32.3 per cent.

Total revenue was estimated at VND88.4 trillion ($3.9 billion), with pre-tax profit at a record VND2.8 trillion ($124.4 million), surpassing the annual plan by 72 per cent and 8.3 per cent higher than in 2016.

The parent company earned revenue of VND66.2 trillion ($2.9 billion) and recorded pre-tax profit of VND1.85 trillion ($82.2 million), 50 per cent higher than planned and up 8 per cent. State budget contributions nearly doubled, reaching VND1.9 trillion ($84.4 million).

The report also revealed that in January 2017, more than 1.2 billion Vietnam Airlines shares (stock code HVN) were traded on the UPCoM market, making the carrier a large-scale public company with capitalization at around the top of the market.

At the end of 2017, HVN shares stood at VND42,000 ($1.8), up 60 per cent compared to the floor price.

It is expected that Vietnam Airlines will be listed on the Ho Chi Minh Stock Exchange (HoSE) in the second quarter of 2018 and will continue to implement its plan to issue additional shares to existing shareholders to increase charter capital and reduce State ownership.

2017 also marked Vietnam Airlines’ next impressive move in the development of a new, modern fleet, with the addition of four Airbus A350-900 XWB and one Boeing 787-9 Dreamliner aircraft, bringing the respective totals to ten and eleven.

Vietnam Airlines also achieved significant strides forward with long-term leases of six A321neos from the Aviation Capital Group (ACG) and a contract for the purchase and maintenance of A321neo aircraft engines with US aerospace manufacturer Pratt &Whitney worth $1.5 billion, signed during US President Donald Trump’s visit to Vietnam last November.

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