Vietnam Airlines Group has today announced its historic profit of VND 2.8 trillion ($121 Million USD).
The Group continues to conclude another year of growth and innovation due to robust demand for air travel, optimized operational efficiency, enhanced control together with the implementation of market-driven solutions in the condition of high fuel prices.
For the first time, Vietnam Airlines and its member airlines (including Jetstar Pacific and VASCO) have exceeded the VND 100 trillion mark in total consolidated revenue, generating approximately VND 102 trillion. Pre-tax profit reached VND 2.8 trillion, exceeding the planned figure of 15 percent. In which, Vietnam Airlines pocketed VND 73.5 trillion revenue and more than VND 2 trillion pre-tax profit. Its contribution to the State budget is roughly VND 6.6 trillion. The financial fortunes are attributed to the Operating Profit Margin of 4.38 percent and Debt to Equity ratio of below 3, lower than that of the beginning of 2018.
In addition to the positive financial result, Vietnam Airlines has carried over 22 million passengers on 142,000 flights and 350,000 tons of cargo in 2018. Vietnam Airlines is among the world’s leading airlines in on-time performance, scoring OTP at 90 percent averagely.
The airline made significant progress in modernizing the fleet and investing in technology with two wide-bodies Airbus A350 and three narrow-bodies A321Neo. As a 4-star airline recognized by Skytrax for three consecutive years, Vietnam Airlines takes great pride in providing the best flying experience using one of the youngest and most modern fleets in the region.
Reflecting on the year, Duong Tri Thanh, President and CEO of Vietnam Airlines said:
“Vietnam Airlines’ strong earning performance capped another year of extraordinary achievement, including surpassing the VND 2 trillion mark in profit. We made significant progress on several key initiatives in 2018 including improved human resources management, enhanced product portfolio and on-time-performance index. 2018’s success offered an unparalleled opportunity for Vietnam Airlines to unlock further growth and bolster the service quality.”
In 2019, Vietnam Airlines will continue to complete the remaining procedures relating to privatization: increasing charter capital and transferring to Ho Chi Minh Stock Exchange; complete fleet development plan for 2021-2025- vision till 2030, incorporate new digital industrial technology, known as Industry 4.0, synchronize IT system and leverage digital business.