Vietnam Airlines pre-tax profits surge 140% in strong year

Vietnam Airlines profits saw strong growth last year, as the modernization and expansion of its long-haul fleet and network started paying dividends.

The Vietnamese airline said the record results were helped by strong domestic growth, which helped overcome global challenges such as terrorism in Europe and overcrowded markets.

The national carrier achieved an 18.7% traffic increase last year, carrying 20.6 million passengers on more than 133,000 flights. This helped it increase its revenues by 10% to US$3.45 billion, and its pre-tax profits by an impressive 140% to US$113.7 million.

In 2016, Japanese group ANA finalised an agreement to invest in Vietnam Airlines, and the airline says it has plans to continue its product development and network expansion in future.

Founded in 1956 under the name Vietnam Civil Aviation, the airline was established as a state-owned enterprise in April 1989. The airline flies to 52 destinations in 17 countries, excluding codeshared services.

As of December 2016, Vietnam Airlines had a fleet of 83 aircraft. In addition to its passenger service, the airline also operates an air freight division of Vietnam Airlines Cargo, providing cargo service to destinations in Asia, Europe, North America and Oceania, using its own passenger aircraft as well as partners’ planes.

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