Vietnam Airlines Group achieves $120.46 million profit in 2018

Wednesday, Jan 02, 2019 17:01

Vietnam Airlines carried more than 22 million passengers on 142,000 flights in 2018. — VNA Photo

On Wednesday, Vietnam Airlines Group, including Jetstar Pacific and Vietnam Air Services Company, announced it made a record consolidated revenue of VND100 trillion in 2018, marking an increase of 15 per cent in pre-tax profit to nearly VND2.8 trillion (US$120.46 million).

Parent company Vietnam Airlines pocketed a revenue of VND73.1 trillion and a pre-tax profit of more than VND2 trillion, reaching 102.7 per cent of its 2018 target.

It contributed nearly VND6.6 trillion to the State budget.

The financial success is attributed to the Operating Profit Margin of 4.38 per cent and Debt to Equity ratio of below 3 per cent, lower than at the beginning of 2018.

More than 22 million passengers on 142,000 flights and 350,000 tonnes of cargo were carried in 2018. The firm is among the world’s leading airlines in on-time performance, scoring at 90 per cent on average.

The airline also made significant progress in modernising its fleet with two wide-body Airbus A350 planes and three narrow-body A321Neos. As a four-star airline recognised by Skytrax for three consecutive years, Vietnam Airlines takes great pride in providing the best flying experience using one of the newest and most modern fleets in the region.

President and CEO of Vietnam Airlines Duong Tri Thanh said the group saw another year of growth and innovation due to robust demand for air travel, optimised operational efficiency, enhanced control and the implementation of market-driven solutions.

He said Vietnam Airlines’ strong earnings performance capped another year of extraordinary achievement, including making a profit surpassing over VND2 trillion for the first time in its history.

“We made significant progress on several key initiatives in 2018 including improved human resources management, enhanced product portfolio and a better on-time-performance index,” said Thanh. “2018’s success offered an unparalleled opportunity for Vietnam Airlines to unlock further growth and bolster service quality.”

This year, Vietnam Airlines will work to complete the remaining procedures relating to privatisation including increasing charter capital, transferring to the Ho Chi Minh Stock Exchange, completing its fleet development plan, incorporating Industry 4.0 technologies, synchronising IT systems and leveraging digital business. — VNS

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