Vietnam Airlines Corporation reports record pre-tax profit of $146 million

Tuesday, Dec 31, 2019 09:33

Vietnam Airlines says it will develop its fleet of aircraft in 2021-25. — Photo VNA

Vietnam Airlines Corporation recorded revenue and pre-tax profit of nearly VND102 trillion (US$4.39 billion) and VND3.37 trillion ($146 million) this year, respectively, marking the firm’s highest ever earnings.

The corporation includes parent company Vietnam Airlines, Jetstar Pacific and Vietnam Air Services Company (VASCO).

Of the figure, the parent company Vietnam Airlines carrier made more than VND75 trillion in revenue and VND2.7 trillion in pre-tax profit, up 12 per cent year-on-year.

With these business results, most of Vietnam Airlines' financial ratios have significantly improved, including capital autonomy and financial safety. The return on equity was over 16 per cent, while debt service coverage ratio decreased 2.27 times.

Besides impressive financial results, in 2019 Vietnam Airlines also marked a record with a fleet of 100 aircraft and nearly 100 routes all over the world. This year also witnessed the carrier receiving the highest number of aircraft in the last five years, with 22 new-generation modern aircraft including Boeing 787-10 Dreamliner, Airbus A350-900 and A321neo.

The carrier said these developments are an important foundation for it to improve its service quality, maintain its position as a 4-star international airline for the fourth consecutive year according to the international air transport rating organisation Skytrax.

In terms of operation, Vietnam Airlines maintained its safe service on 134,000 flights, carrying 23 million passengers and nearly 346,000 tonnes of cargo. The on-time performance (OTP) reached approximately 90 per cent, 2 per cent higher than the year’s target and higher than the global average.

Entering 2020, Vietnam Airlines said it continues to set safety and punctuality as the top priorities, focusing on capturing market share and key markets effectively.

According to the 2020 plan, Vietnam Airlines Corporation aims to transport 25 million passengers and achieve VND110.6 trillion in consolidated revenue.

The corporation will develop the fleet of aircraft in 2021-25, focusing on investment in 50 narrow-body aircraft and continuing to upgrade service quality towards five-star standards and becoming a comprehensive digital airline. — VNS

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