A return to full domestic and international operations has seen Vietnam Airlines record increased revenues and profits in the first three quarters of 2024.
In a third quarter trading statement the flag carrier also cited improved performance to the introduction of new routes and increased operations during the summer peak.
In the nine months to September 30, the airline generated consolidated revenue of more than 85.466 trillion VND, a year-on-year increase of 24.64%. Consolidated post-tax profit was 6.263 trillion VND.
In the third quarter post-tax profit was 862 billion VND, attributed to enhanced operational efficiency and strong performance of subsidiaries.
In the three months to the end of September the airline’s parent company’s total revenue and other income rose by 19.12% YoY, an increase of over 3,470 billion VND.
Service revenue grew by 17.34%, contributing an additional 3,055.7 billion VND compared to the same period last year.
In the first nine months of the year, Vietnam Airlines operated 106,400 flights and carried 17.2 million passengers, a rise of 8.9% compared to the same period in 2023. Cargo volumes were 226,000 tonnes, a year-on-year increase of 42%.
The airlines launched several new international routes including Hanoi and Ho Chi Minh City to Munich (Germany), Manila (Philippines), and Phnom Penh (Cambodia) and new domestic routes include Da Nang to Da Lat, Buon Ma Thuot, and Can Tho.
It has also started using wide-body aircraft on routes connecting Vietnam with India, Singapore and China.
The carrier said: “Despite certain recovery in the aviation market, Vietnam Airlines continues to wrestle with challenges as COVID-related constraints persist.
“By the end of 2023, the airline reported negative equity of roughly 17.026 trillion VND. Political uncertainty, exchange rate fluctuations, rising fuel costs coupled with ongoing engine recalls and increased costs related to materials, spare parts, maintenance and aircraft leasing continue to apply headwinds to economic growth and the aviation sector.”
Vietnam Airlines implemented measures including flexible management of transport capacity, cost optimisation, and discount negotiation.
“Vietnam Airlines has developed a comprehensive plan to tackle the challenges posed by the COVID-19 pandemic, aimed at ensuring a timely and sustainable recovery from 2021 to 2035,” the carrier said in a statement
“This plan has been submitted to the relevant authorities for approval. As part of this plan, Vietnam Airlines aims to rectify its negative equity situation in 2024-2025, which includes restructuring assets and financial investments to enhance revenue and cash flow.
“In addition to improving business performance, Vietnam Airlines continues to work closely with ministries and embassies to organise investment and tourism promotion events to promote Vietnam as a top-of-mind destination.”