Vietnam Airlines Corporation (Vietnam Airlines – HVN) has just announced its business results for the first quarter of 2024.
Specifically, HVN achieved consolidated revenue of nearly VND 28,270 billion, an increase of more than 25% over the same period last year. Of which, the parent company Vietnam Airlines earned more than VND 22,100 billion. This is the highest quarterly revenue since Vietnam Airlines transformed its model into a joint stock company in 2015.
In the revenue structure, sales revenue reached over VND 4,368 billion, air transport revenue was over VND 22,551 billion, revenue from ancillary transportation activities and aircraft maintenance was VND 899 billion, the remainder came from other revenue.
HVN also received nearly VND 138 billion from financial activities, a sharp decrease compared to VND 366 billion in the same period last year. Financial expenses doubled to VND 1,470 billion due to increased exchange rate losses. During the period, the company reported a net loss of nearly VND 650 billion from exchange rate differences as the company has many foreign currency loans.
During this period, the national airline also recorded other income of over VND 3,630 billion. According to Vietnam Airlines’ report, this sudden increase in revenue was due to the recognition of income from debt forgiveness under the aircraft repayment agreement of its subsidiary Pacific Airlines. Pacific Airlines – a subsidiary of HVN has returned all leased aircraft and successfully convinced the shipowner to waive a debt of up to 220 million USD (nearly 5,600 billion VND).
Vietnam Airlines’ consolidated profit before tax was over VND 4,528 billion. This is also the highest profit in the history of this enterprise. Consolidated after-tax profit reached VND 4,441 billion, an increase of 11,995% over the same period last year.
According to Vietnam Airlines’ explanation, the strong increase in after-tax profit was due to the fact that the first quarter of 2024 was a peak business period in the aviation industry. The Corporation continued to proactively implement drastic solutions in operating business activities: Optimizing, improving the efficiency of using the fleet, human resources; minimizing costs, negotiating reduced service prices, interest rates, etc. Gross profit from sales and provision of services in the parent and consolidated reports in the first quarter of 2024 reached over 12.9% of revenue.
The company has also restored the entire domestic flight network and most of the international routes have been operated (compared to the period before covid) and opened new routes.
As of March 31, 2024, Vietnam Airlines still had an accumulated loss of VND 36,742 billion, and equity of – VND 12,556 billion. Vietnam Airlines’ total financial debt is at VND 24,401 billion. The total assets of the Corporation reached VND 56,316 billion.
Regarding measures and roadmap to address the situation of controlled shares, Vietnam Airlines has completed the Restructuring Project of the Corporation for the period 2021 – 2025 and has reported to shareholders and competent authorities for approval.Â
In the project, in 2024 – 2025, the Corporation will implement synchronous solutions to overcome the situation of negative consolidated equity such as implementing synchronous solutions to strengthen adaptability and profitable business, restructuring assets and financial investment portfolios to increase income and cash flow.
Pacific Airlines (formerly known as Jetstar Pacific Airlines) was established in 1991, the first joint-stock airline in Vietnam. Pacific Airlines has continuously incurred losses over a long period of time.
The rare highlight was the period from 2018 to 2019 when the airline made a profit of over VND 30 billion/year. In 2020, Pacific Airlines had an accumulated loss of VND 2,143 billion, in 2021 it lost more than VND 2,308 billion and in 2022 it lost VND 2,096 billion.
In 2020, Qantas divested from this airline to Vietnam Airlines, after many years Vietnam Airlines completed the acquisition of shares from Qantas and increased the number of shares in JPA to 98.85%. After this point, the airline has implemented many measures to restructure its operations.
