Vietnam Airlines reported excellent business performance and accomplished many significant feats in 2019. This, while overcoming a challenging business landscape which saw a market slowdown, depreciation of key currencies, and limited existing infrastructures lacking to meet increasing travel demands.
Vietnam Airlines Group generated an estimated consolidated revenue and profit before tax of VND 101,188 billion (up VND 2,200 billion compared to 2018) and nearly VND 3,369 billion, respectively. The parent company - Vietnam Airlines alone pocketed an estimated revenue and profit before tax of over VND 75,000 billion and over VND 2,700 billion, respectively – up 12% year over year (YOY). Notably, its consolidated contributions into the State budget totaled VND 7,369 billion, up 10% from 2018, while those of the parent company alone amounted to VND 2,573 billion – up 43% YOY.
As a result of its solid business performance, Vietnam Airlines saw significant improvement in its financial indicators, thereby strengthening its financial security. The return on equity (ROE) jumped to over 16% while the debt-to-equity ratio (D/E) decreased to 2.27.
2019 was a record year for Vietnam Airlines as its fleet reached 100 total aircraft, and its global network expanded to nearly 100 routes. With the addition of 22 new-generation aircraft, including the Boeing 787-10 Dreamliner, Airbus A350-900, and Airbus A321neo – this marks the biggest influx in aircraft numbers that the flag carrier has added in history. 2019 also saw the launch of 10 new routes – the largest number of routes it has launched over the course of a year throughout the last five years. Such added capabilities laid an important foundation, enabling the airline to improve its service quality and to be recognized by Skytrax as a four-star airline for the fourth consecutive year.
In 2019, Vietnam Airlines operated 134,000 flights and carried 23 million passengers and nearly 346,000 tons of cargo with absolute safety. It achieved an on-time performance (OTP) of about 90% – 2% more than the annual target and higher than the global average.
In 2020, Vietnam Airlines continues to prioritise safety and OTP while securing its target customer segments and key markets. It plans to carry 25 million passengers and earn VND 110,560 billion in consolidated revenue. The flag carrier will also execute a master project on fleet development for 2021-2025 with a vision towards 2030, plus a venture to procure 50 narrow-body aircraft for 2021-2025. Vietnam Airlines is continuously upgrading its service quality to become a five-star and well-rounded digital airline.
Tags: Vietnam Airlines
