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Record high profit
Vietnam Airlines has just announced its business results for the first quarter, with a revenue of nearly VND 28,300 billion, an increase of more than 25% compared to the same period last year. This is also the highest quarterly revenue since Vietnam Airlines transformed its business model into a joint-stock company in 2015.
The launch of culturally rich and experiential train trips has helped the railway attract a large number of passengers.
The surge in revenue in the first 3 months of the year for Vietnam Airlines is attributed to the peak season in the aviation industry and the high demand for travel. As of now, Vietnam Airlines has restored its entire domestic flight network and reopened most of its international routes compared to the pre-COVID-19 period, and opened new routes.
In response to the high airfare during the April 30th – May 1st holiday, Minister of Transport Nguyen Van Thang has just requested the Civil Aviation Authority of Vietnam to urgently review and inspect the ticket sales process, conduct price declaration, listing, disclosure and transparency of airfares of airlines. The leader of the Ministry of Transport requested the Civil Aviation Authority of Vietnam to urgently review, and if any irregularities are detected, timely direct, rectify and handle violations in accordance with their authority…
In Vietnam Airlines’ business landscape, revenue from the international market has rebounded strongly, reaching over VND 13,800 billion, an increase of 30.4% over the same period last year.
Notably, the cost of goods sold increased less than revenue, helping the company achieve a gross profit of over VND 4,000 billion in the last quarter, double that of the same period last year. Notably, Vietnam Airlines also recorded other income of up to VND 3,630 billion due to income arising from debt cancellation under the aircraft repayment agreement of its subsidiary Pacific Airlines. Vietnam Airlines’ after-tax profit reached over VND 4,400 billion. This is also the highest profit level in the history of this enterprise.
Similarly, Vietjet and Vietravel Airlines also announced positive business results in the first quarter. Accordingly, within the first 3 months of the year, Vietjet safely operated nearly 34,500 flights, transporting more than 6.3 million passengers. Vietjet also opened 15 new international and domestic routes, bringing the total number of routes to 140. This helped the budget airline’s passenger numbers increase by 61% compared to last year, bringing revenue from air transport in the first quarter to over VND 17,700 billion, an increase of 38% over the same period last year. After-tax profit reached VND 520 billion, an increase of 209%. Meanwhile, Vietravel Airlines achieved revenue of over VND 490 billion in the first quarter, with a net profit of over VND 10 billion. This is also the first time this airline has made a profit for 3 consecutive months after 3 years of operation.
Railways Seek a Different Path
Meanwhile, the railway sector also witnessed unexpected business results. According to Saigon Railway Transport Joint Stock Company (SRT), revenue in the first 3 months of the year reached VND 556 billion, an increase of more than 13% compared to the same period last year. This is the highest revenue in nearly 5 years. Contributing to this growth was revenue from passenger and luggage transportation, which surged to nearly VND 59 billion. Along with that, thanks to good control over financial costs, SRT’s after-tax profit reached nearly VND 33 billion.
Hanoi Railway Transport Joint Stock Company (SHB) also said that its first-quarter revenue reached over VND 710 billion, up 13% compared to the same period in 2023. This revenue level is a record in nearly 9 years, mainly from sales and service provision activities. The company’s after-tax profit achieved after 3 months was over VND 34 billion, about 3 times higher than the profit target of VND 11.2 billion for the whole year. After only the first 3 months of the year, Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company have exceeded their annual profit plans by about 2.8 times and 3 times, respectively.
Explaining the spectacular growth of the railway sector, Mr. Dang Sy Manh, Chairman of the Board of Directors of Vietnam Railways Corporation (the parent company of SRT and SHB), said that it is due to the efforts of the companies to innovate business methods such as building appropriate train schedules, ticket sales plans, and reasonable fares.
According to Mr. Manh, during the past period, the leadership of the railway sector has constantly sought new directions amidst fierce transport competition. The sector has positioned itself not only to transport passengers but also to increase the experience on each train trip, such as where to eat and stay, what to experience, and what amenities to enjoy. Therefore, the industry has launched a series of train trips serving people’s sightseeing, such as connecting the heritage of Hue-Da Nang… attracting the participation of a large number of passengers. Along with that, the railway sector is constantly exploiting and opening new international intermodal trips, contributing to enhancing the international intermodal transport capacity of Vietnam Railways.
