How did Vietnam’s two biggest airlines perform in 2023: One made a profit of over 300 billion, while the other incurred losses of over 5,000 billion

Vietnam Airlines and Vietjet Air, two leading airlines in Vietnam, have recently released their financial reports for the year 2023.


Vietnam Airlines – JSC (Vietnam Airlines, HoSE: HVN) has announced its consolidated financial report for the fourth quarter and full year 2023. In the fourth quarter of 2023, Vietnam’s national airline recorded VND 23,831 billion in net revenue, a 23% increase compared to the same period in 2022, due to the recovery of the airline market and an increase in transportation volume. Of which, domestic revenue increased by 14% and international revenue increased by 49.1% compared to the same period last year.

In the fourth quarter of 2023, Vietnam Airlines reported a gross loss of VND 189 billion, which was a positive improvement compared to the gross loss of VND 1,077 billion in the fourth quarter of 2022. Vietnam Airlines’ financial revenue decreased by nearly half compared to the same period, reaching VND 286 billion. Compared to the fourth quarter of 2022, some other expenses decreased: Financial expenses decreased by VND 409 billion to VND 747 billion, and sales expenses decreased by VND 328 billion to VND 991 billion.

In the fourth quarter of 2023, Vietnam Airlines reported a net loss of VND 1,980 billion, a decrease of over 40% compared to the same period last year. The national airline attributed the reduced consolidated loss to a decrease in losses at the parent company and Pacific Airlines, while profits increased at other subsidiaries such as Nội Bài Airline Catering Services Corporation (NCS) and Vietnam Air Caterers Co., Ltd. (VACS).

Hãng hàng không Quốc gia Vietnam Airlines báo doanh thu 2023 đạt 92.100 tỷ đồng.

For the full year 2023, Vietnam Airlines reported consolidated revenue of over VND 92,100 billion, a 30% increase compared to the same period last year. This is the highest revenue of the company since the Covid-19 pandemic and is equivalent to 90% of the revenue in 2019, a year before the outbreak.

Despite the high revenue, HVN still incurred a net loss of VND 5,516 billion, which is a 50% decrease compared to 2022 (-VND 11,223 billion). This is the fourth consecutive year of losses for the airline.

As of December 31, 2023, Vietnam Airlines’ total assets amounted to VND 57,616 billion, a decrease of VND 3,020 billion compared to the beginning of the year, of which cash and cash equivalents amounted to VND 2,554 billion.

Vietnam Airlines’ total debt as of the end of 2023 was VND 74,561 billion, mainly consisting of VND 60,608 billion in short-term debt. The large accumulated loss resulted in the airline’s negative owner’s equity of VND 16,945 billion.

Regarding business recovery solutions, Vietnam Airlines stated that it has completed the restructuring plan for the entire company. In 2024, the company will implement measures to address the consolidated losses and negative owner’s equity.

Vietjet Air báo doanh thu hợp nhất năm 2023 đạt 62.500 tỷ đồng.

Hãng bay Vietjet Air tiếp tục báo lãi

Meanwhile, Vietjet Aviation Joint Stock Company (HoSE: VJC) has announced strong business results for the year 2023. According to the financial report, Vietjet recorded VND 53,600 billion (standalone) and VND 62,500 billion (consolidated) in revenue, representing respective increases of 62% and 56% compared to 2022. The net profit after tax for the company in 2023 reached VND 697 billion (standalone) and VND 344 billion (consolidated).

In the fourth quarter of 2023, standalone and consolidated revenue reached VND 14.9 trillion and VND 18.8 trillion, respectively, a 89% and 49% increase compared to 2022. The net profit after tax for the standalone and consolidated financial statements reached VND 70 billion and VND 152 billion, respectively.

Supporting revenues and cargo transportation reached VND 18.9 trillion, a strong growth of 46% compared to 2022, contributing 40% to the total air transportation revenue.

As of December 31, 2023, Vietjet’s total assets reached over VND 84.6 trillion, an increase of nearly 25% compared to the beginning of the year, as Vietjet invested in new-generation A321 NEO aircraft. The company’s debt-to-equity ratio is two times, which is within the normal range in the aviation industry (3-5 times), and the liquidity ratio is 1.24 times, which is good in the airline industry.

Cash and cash equivalents as of December 31, 2023 reached VND 5,021 billion, more than twice the amount compared to the same period last year. In 2023, Vietjet contributed direct and indirect taxes and fees of about VND 5,200 billion to the state budget.

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