A Vietnam Airlines's aircraft. — Photo courtesy of VNA
The national flag carrier, Vietnam Airlines (VNA) produced a strong performance for the third quarter and the first nine months of 2024, driven by the restoration of its entire domestic network and most of the international network, alongside the introduction of new routes and increased operations during the peak summer season.
In the first nine months of 2024, Vietnam Airlines generated consolidated revenue of more than VNĐ85.466 trillion (US$3.4 billion), marking a year-on-year increase of 24.64 per cent. The airline’s consolidated post-tax profit reached VNĐ 6.2 trillion.
In the third quarter (Q3) of 2024, post-tax profit reached VNĐ862 billion, mostly attributed to enhanced operational efficiency at the parent company and strong performance of its subsidiaries.
The parent company's total revenue and other income rose by 19.12 per cent in Q3, compared to the same period last year, equivalent to an increase of over VNĐ3.4 trillion. Notably, its service revenue grew by 17.34 per cent, contributing an additional VNĐ3 trillion compared to the same period last year.
In the first nine months of the year, the carrier operated 106,400 flights and carried 17.2 million passengers, a rise of 8.9 per cent compared to the same period in 2023. Cargo throughput reached 226,000 tonnes, reflecting a year-on-year increase of 42 per cent.
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 VNĐ17 trillion. 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.
In response, Vietnam Airlines has implemented measures including flexible management of transport capacity, cost optimisation and discount negotiation. The airline is also leveraging the growth momentum in international travel to effectively enable a swift recovery and expansion. — VNS