Vietnam Air pre-tax profit beats target

18-Jul-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Vietnam Airlines has reported its business performance in the first half of the year, with consolidated revenue reaching VND51.7 trillion, up 5.5 percent year-on-year, and consolidated pre-tax profit exceeding the target by 30 percent to hit VND1.65 trillion.

In the period, the national flag airline continued to have positive financial indicators, with a debt to equity ratio of 2.32, lower than the 2.58 seen early this year and well below the limit set by the government.

The carrier operated 73,650 safe flights, carrying over 13.9 million passengers and 180,000 tonnes of cargo, up 2 percent and 1.6 percent year-on-year, respectively. Its on-time performance, averaging at 90 percent, remained among the highest globally.

Thanks to its operational efficiency, Vietnam Airlines Group, which comprises Vietnam Airlines, Jetstar Pacific and Vietnam Air Services Company, continued to spearhead the local aviation market, accounting for nearly 51 percent of the aggregate passenger volume.

These figures reflect Vietnam Airlines’ robust performance amid a slowdown in purchasing power growth, a surge in fuel prices during the first five months and fluctuations in the exchange rates.

In the January-June period, Vietnam Airlines also introduced Premium Economy Class on the Hanoi-HCM City route. In addition, the quality of its services on international flights was further improved as the carrier began using wide-body Airbus A350 and Boeing 787 aircraft on routes to other Southeast Asian destinations and moved its operations in Russia’s capital of Moscow from Domodedovo Airport to Sheremetyevo Airport.

Further, Vietnam Airlines Group launched seven new domestic routes connecting HCM City to Chu Lai, Hanoi to Dong Hoi and Danang to Thanh Hoa, Vinh, Da Lat, Phu Quoc and Can Tho.

In the first six months, the carrier received eight narrow-body Airbus A321neos and two wide-body Airbus A350s, completing its total order of 14 Airbus A350s.

In the second half of 2019, it plans to invest in 20 narrow-body Airbus A321neo jetliners and put into use three wide-body Boeing 787-10s.


Category: Finance, Vietnam

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