Vietnam Airlines achieves pre-tax profit of $82.4 million in H1

Thursday, Aug 16, 2018 17:17

Vietnam Airlines’ total consolidated revenue was estimated at VND49.8 trillion in H1, while the parent company’s revenue was estimated at nearly VND36.3 trillion. — Photo

Vietnam Airlines Corporation earned a pre-tax profit of nearly VND1.92 trillion (US$82.4 million) in the first half of 2018, a year-on-year increase of 87 per cent.

Parent company Vietnam Airlines made a pre-tax profit of more than VND1.39 trillion, more than double its target.

According to a Vietnam Airlines’ representative, the airline maintained its remarkable performance due to increased operational flexibility in the transportation of passengers and cargo, despite stagnation in the development of air transport markets and rising fuel prices.

During the first half, Vietnam Airlines operated 72,800 flights with its rate of On Time Performance (OTP) reaching 90 per cent. The airline transported 13.7 million passengers – a rise of 4 per cent compared to the same period last year. Cargo reached 167,000 tonnes, a year-on-year increase of 8.5 per cent, and fulfilling nearly 100 per cent of the target for domestic and international markets.

Vietnam Airlines’ total consolidated revenue was estimated at VND49.8 trillion, while the parent company’s revenue was estimated at nearly VND36.3 trillion.

The rate of self-check-in at Ha Noi, HCM City and Da Nang has also reached high levels, at 39 per cent, 42.4 per cent and 29.2 per cent, respectively.

In May this year Vietnam Airlines completed the auction of purchase rights for additional shares of the State, and the airline continued to enhance its cooperation with strategic shareholder Japanese largest airline ANA Holding Inc.

With a focus on restructuring human resources and improving labour productivity, Vietnam Airlines has gradually reduced a labour force. As of June 30, it had 6,685 employees, down 2 per cent year-on-year.

According to the Association of Asia Pacific Airlines, the productivity of Vietnam Airlines in terms of passenger numbers is one of the top three airlines worldwide thanks to enhanced service quality. Employee incomes, benefits and welfare improved on average by 8.8 per cent per annum from 2012-18.

Vietnam Airlines has also applied payment methods via QR code through the local payment gateways Napas and VNPay, bringing convenience speed and security to customers while affirming the leading position in applying digital technology to catch up with the trend, comparable with other airlines in the world.

From July to December 2018, Vietnam Airlines is researching the feasibility of operating regional jets to fly short local routes with ATR72 aircraft such as Ha Noi - Vinh /Dien Bien/Dong Hoi and Ha Noi - Con Dao - HCM City in order to meet the increasing demand.

In the second half of 2018, Vietnam Airlines plans to increase its charter capital by issuing more shares to existing shareholders.

These efforts should guarantee credit capital for the airline’s investment projects while reducing State ownership from 2019-20. — VNS

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