Vietravel Airlines Reports Surging Revenue and Quarterly Profits
Vietravel Airlines, a prominent tourism-oriented carrier, recently announced impressive results for March. The airline surpassed its revenue target, generating 172.3 billion VND, a significant 54% increase compared to projections.
This achievement marks a notable milestone for Vietravel Airlines, as it represents the first three consecutive profitable months since its inception over three years ago. During the first quarter of 2024, the company’s revenue reached 491.2 billion VND, reflecting an increase of nearly 42%, with a net profit of 10.1 billion VND.
Vietravel Airlines’ profitability stands out amidst elevated domestic airfares on certain routes, even after the peak Lunar New Year period, which typically differs from previous years.
One key factor contributing to this success is the temporary grounding of Vietnam Airlines’ and Vietjet Air’s A321 aircraft for maintenance, resulting in reduced supply. Additionally, the suspension of Pacific Airlines and the scaling back of Bamboo Airways’ operations have expanded market share opportunities for remaining carriers.
In response to the current domestic aviation landscape, Vietravel Airlines has increased the frequency of several flights, including: Ho Chi Minh City – Da Nang (3 round-trip flights/day), Ho Chi Minh City – Hanoi (5 round-trip flights/day), and Hanoi – Da Nang (2 round-trip flights/day).
The airline has also prioritized network expansion and increased flight frequencies domestically and internationally. Vietravel Airlines offers charter flights in collaboration with Vietravel tourism, connecting destinations such as Ho Chi Minh City – Takamatsu (Japan); Da Nang – Fukushima (Japan), and vice versa.
Vietravel Airlines aims to maintain profitability in April and sustain its growth trajectory, contingent on operating as per schedule. The company projects a revenue target of 1,049 billion VND in the second quarter.
Currently, Vietravel Airlines operates three A321 aircraft.
Throughout 2024, the airline plans to optimize passenger revenue by promoting ancillary products (amenity packages, seat selection, hot meals, Vietnamese cultural products, etc.).
In the first two months of 2024, Vietravel Airlines’ revenue from ancillary products surged by 147% compared to the same period in 2023 (a 47% increase), with revenue from amenity packages and checked baggage accounting for over 85%.
To date, Vietravel Airlines is the only carrier to disclose its Q1 2024 financial results.
Author: Ngoc Ha
