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Vietnam Airlines Group achieves $91.3M AUD consolidated profit in the first quarter of 2019

April 26, 2019 Financial No Comments Email Email

Vietnam’s aviation market has continued its growth momentum in the first quarter of 2019 with international passenger traffic of 8.6 million and domestic traffic of 8.7 million, a rise of 13.2 per cent and 9.8 per cent respectively compared to the same period last year. Stable exchange rates and lower fuel prices have been favorable conditions to further boost the Group’s performance.

Vietnam Airlines Group reported a consolidated revenue increase of 4.3 per cent compared to the same period last year, pocketing $1.5 billion AUD and consolidated profit before tax of $91.3 million AUD, achieving 45 per cent of the yearly plan. Vietnam Airlines’ revenue was estimated at $1.1 billion AUD, up 5.5 per cent over the same period and profit before tax reached more than $73.2 million AUD, up 36.6 per cent over the same period. 2019 so far has seen the airline continue its positive financial indicators with debt to equity ratio of 2.41, lower than that of the beginning of the year (2.58) fueled by balanced cash flow and an effective payment plan.

During the first quarter of 2019, the carrier expects a 2.5 per cent increase in the number of passengers over the same period, raising the total number of passengers carried to 5.4 million on 33,500 flights, up 2 per cent over the same period. Vietnam Airlines Group and its member airlines account for 52 per cent of domestic market share. The carrier maintains a high on time (OTP) performance of 90 per cent, placing them among the top airlines in the world for OTP.

January-March 2019 also saw 50 per cent of total passengers using online check-in service via the website, mobile application and digital check-in kiosks at the two largest airports in the country, Noi Bai and Tan Son Nhat. These results reflect Vietnam Airlines’ investment in advanced technologies, which helps to enhance passenger experience and reduce pressure on airport infrastructure.

As of March 31, 2019 the number of employees was 6,468 people, 7 per cent fewer than the same period in 2018. Vietnam Airlines’ labour productivity in the first quarter of 2019 reached more than 1.8 million seat kilometers per employee, an increase of nearly 10 per cent over the same period last year. According to International Air Transport Association, Vietnam Airlines was ranked second in the top Asia-Pacific legacy airlines with the most productive workforce.

Ensuring effective use of resources and operational flexibility were the foundation for Vietnam Airlines to develop its business in the first 3 months of 2019. In order to expand its domestic network, the airline has introduced new routes between Ho Chi Minh city and Chu Lai, Da Nang – Can Tho and Da Nang – Vinh.  In its quest for excellence, Vietnam Airlines is continuing to improve all aspects across the business, with one major element being the new-generation aircraft fleet. One wide-body Airbus A350-900 and two narrow-body Airbus A321neos have recently joined the airline’s fleet to serve growing travel demand.

The first quarter marks Vietnam Airlines’ efforts to expand cooperation in the international market, including setting up a joint venture to provide component Maintenance, Repair & Overhaul solutions with Singapore Technologies Aerospace, expanding strategic relationship with leading technology provider Sabre Corporation and the Cambodian Ministry of Tourism for the 2019- 2021 period. This is a testament to the airline’s commitment to mastering advanced technology and its vital role in Vietnam’s politics, economy and society.

In the second quarter, Vietnam Airlines will put 10 Airbus A321neos into service, prepare to take delivery of its first Boeing 787-10 aircraft as part of the wide-body fleet development programme, list HVN shares on the Ho Chi Minh Stock Exchange (HOSE) and host the Annual General Meeting of Shareholders 2019. Vietnam Airlines is looking forward to cultivating a stronger capability to deliver quality experiences to the customers, in line with the airline’s impressive four-Star Skytrax ranking over the summer peak period from April 30 to May 1.

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