Passengers queue for procedures at Noi Bai Airport. Photo: Phan Cong
According to the financial report for the first half of 2024, Vietnam Airlines (HOSE: HVN) recorded a consolidated revenue of over VND 53,126 billion, up 20% compared to the same period last year. Consolidated pre-tax profit was more than VND 5,674 billion. Of which, net profit from business activities was nearly VND 1,143 billion and other income was over VND 4,531 billion, with a significant contribution from the debt cancellation of VND 4,665 billion for Pacific Airlines by its partners.
In terms of operation results, the carrier transported nearly 11.5 million passengers and 143,000 tons of cargo and mail, up 10% and 42.1%, respectively, compared to the same period in 2023.
This achievement was made possible as Vietnam Airlines seized the opportunity to leverage the growth of the international market for a swift recovery and expansion. The total international market in the first six months served nearly 20 million passengers, up 42% over the same period in 2023, almost recovering to the pre-COVID-19 level. Vietnam Airlines seized this opportunity by launching new routes to Manila, Philippines and Chengdu, China, as well as deploying wide-body aircraft on routes to India, China, and Singapore. For the domestic market, Vietnam Airlines increased night flights and implemented aviation-tourism linkage promotions to strongly stimulate domestic travel demand.
Vietjet Aviation Joint Stock Company (HOSE: VJC), on the other hand, carried 13.1 million passengers and operated 70,154 flights in the first six months of 2024, higher than the pre-pandemic level in 2019.
Vietjet’s air transport revenue in the first six months reached VND 32,893 billion, up 31% over the same period. Pre-tax profit reached VND 1,174 billion, up 690% year-on-year.
In terms of consolidated business results, Vietjet achieved a revenue of VND 34,016 billion and a pre-tax profit of VND 1,311 billion in the first six months of 2024, up 15% and 433%, respectively, compared to the same period, exceeding the plan by 21%. As of June 30, 2024, Vietjet’s total assets reached over VND 91,755 billion.
This outstanding growth performance was largely attributed to the airline’s expansion of its medium-haul international network. With the continuous launch of new international routes, Vietjet is currently operating 111 international routes out of a total of 149 routes.
The airline representative stated their readiness to continue with plans for further international network expansion.
Main Driver
According to the Vietnam Aviation Authority, in the first half of 2024, 63 foreign airlines and 4 Vietnamese carriers (including Vietnam Airlines, Pacific Airlines, Vietjet Air, and Vietravel Airlines) operated nearly 160 international routes connecting Vietnam with the world. The international route network has recovered to the pre-COVID-19 level and continues to expand into new markets in Central Asia, India, and Australia.
Especially during holidays, Tet, and the summer vacation period, international routes to tourist destinations such as Da Nang, Cam Ranh, Phu Quoc, and Dalat were operated with higher capacity and frequency by airlines.
For the main international gateways, international passenger volume also showed strong growth compared to the same period in 2023 and reached the same level as in 2019. The two main gateways, Noi Bai and Tan Son Nhat International Airports, handled 5.9 and 8 million international passengers, respectively, the highest ever.
It is forecasted that in 2024, the operation of the international market will continue to increase and be the main driver for the overall market growth, while the domestic market will continue to be affected by supply factors due to objective factors (aircraft shortage, exchange rates, interest rates, fuel prices, etc.).
Vietnam Airlines sees promising results in its quest for financial balance
By the end of 2023, this business has incurred a total loss of over 5.8 trillion VND despite a 30% increase in revenue.
Dizzying experience for passengers as flights at Tan Son Nhat Airport are forced to reschedule
Due to inclement weather, a number of flights from Tan Son Nhat Airport in Ho Chi Minh City to various provinces and cities have been delayed, causing inconvenience to waiting passengers.
Increase flight frequency to Dien Bien during the Lunar New Year holiday Giap Thin.
To meet the high demand of passengers during the Tet holiday, Vietnam Airlines will be increasing the frequency of flights on the Hanoi – Dien Bien route. Specifically, there will be additional flights on February 7th – 8th, 2024 (equivalent to the 28th – 29th day of the 12th lunar month, Year of the Cat) and from February 12th – 15th, 2024 (equivalent to the 3rd – 6th day of the 1st lunar month, Year of the Horse).
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.
Thousands of additional flights, high prices for Tet holiday airfares remain unchanged
Vietnamese airlines have leased 15 aircraft, bringing the total to nearly 3,000 flights to serve the peak Tet holiday season. However, many popular flights still have exorbitantly high ticket prices.
