HÀ NỘI — Vietnam Airlines has marked a significant turnaround after enduring four challenging years affected by the COVID-19 pandemic. 

The national flag carrier's recent financial report highlights a robust recovery, showcasing remarkable increases in revenue and profitability.

In the latest fiscal year, Vietnam Airlines reported net revenue of VNĐ105.8 trillion (US$4.15 billion), reflecting a 15.6 per cent increase year-on-year. 

The cost of goods sold rose modestly by 4.9 per cent, resulting in a gross profit of over VNĐ13.8 trillion, an impressive 3.6-fold increase year-on-year. This uptick improved the gross profit margin from 4.2 per cent in 2023 to 13.1 per cent in 2024.

Following a period of near inactivity due to the pandemic, Vietnam Airlines has successfully restored its entire domestic flight network and resumed most international routes, even introducing new connections. 

Notably, the airline launched direct flights from Hà Nội and HCM City to Munich, as well as services to Phnom Penh and Manila. The airline has also reinstated routes to Chengdu in China and expanded the number of domestic connections.

In 2024, Vietnam Airlines transported 22.7 million passengers, an 8 per cent increase in volume, while cargo transport surged by 40 per cent, totalling approximately 314,700 tonnes. Each aircraft operated an average of 11 hours per day, up 25 per cent from 2023.

Financial activities also saw a boost, with revenues exceeding VNĐ1.26 trillion, a 36 per cent rise year-on-year.

However, financial expenses increased by 26.9 per cent to nearly VNĐ5.6 trillion, primarily due to exchange rate losses and interest payments. The airline faced a net loss of nearly VNĐ1.5 trillion from currency fluctuations.

Despite these challenges, Vietnam Airlines recorded a significant turnaround in operational profit, amounting to over VNĐ2.5 trillion, compared to a loss of nearly VNĐ6 trillion in the same quarter the previous year. 

The airline realised other profits of VNĐ5.2 trillion, largely attributed to debt relief of over VNĐ4.7 trillion, easing financial pressure.

By the end of 2024, Vietnam Airlines achieved a profit before tax of VNĐ7.7 trillion, a substantial improvement from a loss of VNĐ5.36 trillion the previous year, marking the highest profit in the airline's history and more than double the pre-pandemic profits of 2018 and 2019.

The recovery has enabled the national airline to end a four-year streak of losses and meet its goal of achieving a balanced budget for the first time since 2020, as outlined in the 2024 annual shareholder meeting.

In response to the challenges it faced, the airline undertook a comprehensive restructuring initiative, which included negotiating deferred payments, reducing leasing costs and selling older aircraft. 

The Government also provided crucial support, including tax exemptions and a liquidity assistance package of VNĐ12 trillion in 2021.

As of late November 2024, the National Assembly approved additional measures to bolster the airline's recovery, allowing it to issue new shares to existing shareholders, aiming to raise up to VNĐ22 trillion in capital through a phased approach.

Vietnam Airlines has completed its overall restructuring plan for 2021-2025 and is now poised to implement comprehensive strategies to enhance resilience and profitability, focusing on asset restructuring and financial investments to improve cash flow and prepare for future capital increases. — VNS