Vietnam Airlines Group generated more than VND 3.2 trillion profit through the first nine months of 2019. (Photo: VNA).
Through the first nine months of 2019, Vietnam Airlines Group reported a total consolidated revenue exceeding VND 76.7 trillion, while the consolidated profit before tax (PBT) reached nearly VND 3.3 trillion, accounting for 97.9 per cent of the whole-year plan. The parent company – Vietnam Airlines – earned more than VND 57.4 trillion in revenue and VND 2.7 trillion in PBT, up 52.84 per cent year-over-year in terms of profit.
In the third quarter of 2019, the consolidated PBT of the Group and the parent company reached VND 1.5 trillion and VND 856 billion, respectively. The debt-to-equity ratio (D/E excluding sales) is 2.45, remaining at a safe level and lower than that at the beginning of 2019 (2.58).
Operating results recorded significant growth after the first nine months of 2019. Vietnam Airlines, Jetstar Pacific, and VASCO have transported more than 21.4 million passengers, up 3.2 per cent versus prior year, and more than 256 thousand tons of cargo, a slight increase versus prior year. Vietnam Airlines Group continues to affirm its leading position in the domestic market with 51.7 per cent market share. Notably–despite the peak summer season with a surge in the number of passengers–Vietnam Airlines still maintained a remarkable on-time performance (OTP) at approximately 90 per cent through the three quarters of 2019, considered high compared to that of regional and global airlines.
These positive financial and operating results are attributed to Vietnam Airlines Group’s efforts to develop its fleet, flight network and services. Continuing the roadmap to modernize its fleet and expand its flight network, in the first nine months, Vietnam Airlines Group received two more Boeing 787-10s, ten A321neos, and launched some new domestic and international routes such as Ho Chi Minh City – Chu Lai, Da Nang – Thanh Hoa, Vinh, Da Lat, Phu Quoc, Can Tho, Taiwan, and Busan (South Korea).
Vietnam Airlines implementing telephone check-in service. (Photo: VNA).
Vietnam Airlines has strengthened its cooperation with international airlines such as Delta Airlines and China Airlines to launch connecting flights to the U.S., as a prerequisite for the development of Vietnam – U.S. direct flights. In September 2019, Vietnam Airlines officially opened Vietnam-Singapore Engineering Technology Co., Ltd. (VSTEA), enhancing its aircraft repair and maintenance capability to master advanced technologies and improve operational efficiency.
In the context of increased airline competition, Vietnam Airlines continuously leads the trend with new products and services. In the third quarter of 2019, the carrier opened a new Lotus Lounge in Da Nang International Airport and implemented telephone check-in service. The rate of self-check-in at three airports in Hanoi, Ho Chi Minh City, and Da Nang reached an impressive rate of approximately 50 per cent versus prior year and exceeding the target rate.
Labor productivity is a remarkable highlight of Vietnam Airlines, up 5.1 per cent versus prior year. High labor productivity is a significant basis for Vietnam Airlines to fulfill its responsibilities and effectively implement upcoming goals.
Over the remaining three months of 2019, Vietnam Airlines plans to focus on periodic maintenance of aircraft, enhanced training, and ensuring resources for the year-end peak period. The carrier is expected to take delivery of four Airbus A321neos, one Boeing 787-10 and to introduce new routes to Bali, Phuket, Macau, and resume the Da Nang – Bangkok route.
Nguyen Xuan Nghia – COMM
