Vietnam Airlines announces record profits
Vietnam Airlines has announced that it achieved significant goals, including record profits of 2,500 billion Vietnamese dong (almost US$114m) in 2016.
The results reflect the company’s success in taking advantage of opportunities to grow in the domestic market and implementation of flexible solutions to deal with challenges such as the economic slowdown, terrorism in Europe and overcrowded infrastructures.
Among the airline’s key achievements are:
Record profits
The total consolidated revenue of Vietnam Airlines and its subsidiaries in 2016 is estimated at over 3.45 billion USD (76,000 billion VND), up 10 per cent year-on-year. The company’s total consolidated profit before taxes is estimated at nearly 113.7 million USD (2,500 billlion VND), up 140 per cent year-on-year and surpassing the annual target by seven per cent.
The carrier estimates its total revenue to be nearly 2.68 billion USD (59,100 billion VND), resulting in a total pre-tax profit of 72.7 million USD (1,600 billion VND), up 5.6 times year-on-year. The company contributed 222.7 million USD (4,900 billion VND) to the state’s budget, a year-on-year increase of 11 per cent.
Growth in transport volume
In 2016, Vietnam Airlines safely operated over 133,000 flights with 20.6 million passengers, an increase of 18.7 per cent on 2015. The airline also carried over 264 thousand tons of cargo, surpassing the year’s target of 10 per cent.
Leading the market
By sharing resources with carriers such as Jetstar Pacific and VASCO, Vietnam Airlines has established an efficient flight network, offering a variety of products and services to meet market demands. According to the latest CAPA data, Vietnam Airlines has up to 45 per cent of the market share on the key and largest domestic routes between Hanoi and Ho Chi Minh city, while the combined market share of Vietnam Airlines and Jetstar Pacific is 63 per cent.
Achievements in equitisation
In 2016, the final steps in Vietnam Airlines’ equitisation process were accomplished. Vietnam Airlines has signed cooperation contracts with foreign investors the Japanese ANA Holdings Inc, which will help improve its management capacity and product development, extend flight networks and enhance competitiveness, realising the long-term sustainable development plan for in the future.
Upgrading services
Vietnam Airlines was named as a four-star airline by Skytrax in 2016, thanks to its continuous efforts to upgrade and improve its service and product quality, especially in Business Class. According to customer surveys conducted on board, total satisfaction scores given by customers in 2016 are on the rise, demonstrating the airline’s strong commitment to improving its service quality to meet customers’ needs.
The carrier aims to continue providing a high-quality four-star service in 2017, while following a plan to simplify its structure and reduce the number of aircraft in its fleet.
Vietnam Airlines offers the UK’s only nonstop flights to Vietnam, operating daily services from Heathrow Terminal 4 to Hanoi or Ho Chi Minh City. Flights are scheduled to offer convenient overnight journeys in both directions, and excellent onward connections via its comprehensive network of over 40 destinations in Asia, including more than 20 within Vietnam and Indochina, as well as China, Japan and Taiwan.
