Vietnam Airlines Beats 2018 Profit Target, Earning $120 million

Vietnam Airlines Group has announced its pre-tax profit reached nearly VND 2.8 trillion (USD 120 million) in 2018, beating the annual target by 15 percent, as its consolidated revenues rose to VND 102 trillion, the first time it broke the VND 100-trillion threshold thanks to a set of operational measures.

The profit, contributed by the airline and its affiliates including Jetstar Pacific and VASCO,has been made following enhanced control, capacity allocation in line with market demand, optimized operational efficiency, a higher seat occupancy rate and a reduction of costs, especially those on fuel, the group said.  

Of the overall results, the pretax profit of Vietnam Airlines alone reached around VND 2 trillion on revenue of VND 73.5 trillion, or 2.7 percent above the target set for 2018. The carrier contributed nearly VND 6.6 trillion to state budget, reporting an operating profit margin of 4.38 percent while its debt-to-equity ratio stood below 3, a drop from the start of last year.

The airline has made significant progress in modernizing the fleet and investing in technology, adding up two wide-body A350 planes and three narrow-body A321Neos from Airbus. Being a 4-star airline recognized by Skytrax for three years in a row, Vietnam Airlines takes great pride in providing the best flying experience using one of the youngest and most modern fleets in the region.

In 2019, Vietnam Airlines will further implement major plans, including completing the procedures of privatization, raising the charter capital and moving its listing to the Ho Chi Minh Stock Exchange. The airline would also finalise the fleet development plan for the 2021-2025 period, with vision toward 2030, and incorporate new digital industrial technology, known as Industry 4.0, while IT systems would be synchronized and the operation optimized in line with the aviation sector’s standards toward digital business.