Vietnam Airlines sets revenue target of over 105,000 billion VND in 2024

In 2023, Vietnam Airlines recorded consolidated revenue of VND93,265 billion, nearly 30% higher than the same period last year and approaching the peak level of the pre-pandemic period.

Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines - Photo: VNA

At the 2024 Annual General Meeting of Shareholders held on June 21, Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, informed that in 2023, Vietnam Airlines Group transported more than 24.1 million passengers and 230,000 tons of cargo, up 16.4% and 5.8% respectively compared to the same period. The international flight network has recovered 90% . Positive operating results helped the airline achieve VND 93,265 billion in consolidated revenue, nearly 30% higher than the same period in 2022 and approaching the peak in 2019. The consolidated loss before tax decreased by VND 5,583 billion, down by half compared to 2022. According to Mr. Hoa, in 2023, the aviation industry continues to face many obstacles from geopolitical conflicts that disrupt the supply chain, fuel prices remain high at over 105 USD/barrel, interest rates and exchange rates fluctuate unfavorably. Slow domestic economic growth has led to a decline in travel demand this year. Internationally, the key market of Northeast Asia has recovered more slowly than expected. Bright spots include the positive growth of the Australian and Indian markets, and the strong recovery of the Southeast Asian market. In the context of aviation facing many cost pressures, Vietnam Airlines' services have been continuously improved and received good feedback from customers. The airline has been honored in many major international award categories such as "5-star international airline" awarded by The Airline Passenger Experience Association (APEX); Top 20 best airlines in the world for safety and service quality according to AirlineRatings; World Travel Award for 4 categories "Asia's Leading Airline - Economy Class", "Asia's Leading Airline - Cultural Identity", "Asia's Leading Airline - Cabin Crew Service" and "Asia's Leading Airline - In-flight Magazine"... To achieve the above results, according to Mr. Hoa, the airline has proactively implemented synchronous solutions on its own, closely following market developments. "The airline has restored its international flight network equivalent to 90% of 2019, opening new routes such as Hanoi/Ho Chi Minh City - Mumbai, Hanoi - Melbourne, Ho Chi Minh City - Perth. The domestic flight network continues to operate with the number of restored routes equivalent to 2019", informed the leader of Vietnam Airlines. Vietnam Airlines also focuses on cost management, thoroughly saving. In addition to reducing costs according to production scale, the airline has implemented cost savings, negotiated price reductions, deferred payments... to help cut costs with an estimated amount of more than 3,200 billion VND. At the same time, Vietnam Airlines proactively restructured loans, flexibly used short-term loans. The airline promoted the strategy of improving services, increasing the application of new technologies and software in many work processes and service touch points, not only helping to boost labor productivity but also improving passenger satisfaction. In 2023, the customer satisfaction index (CSI) grew beyond the target with domestic CSI reaching 4.17 points, international CSI reaching 4.0 points.

In 2023, the customer satisfaction index (CSI) grew beyond the target with domestic CSI reaching 4.17 points and international CSI reaching 4.0 points.

Promoting restructuring, revenue target of over VND 105,000 billion Commenting that in 2024, the aviation market will still face many challenges, Mr. Hoa emphasized that Vietnam Airlines has built key goals, directions, and tasks. In 2024, the airline set a consolidated revenue target of over VND 105,000 billion. "The airline especially focuses on implementing the restructuring project, with comprehensive solutions on restructuring assets, capital sources, investment portfolio, organizational structure, and corporate governance innovation. The big goal is still to reduce remaining losses, moving towards balancing revenue and expenditure in 2024." In 2024, the world economy and politics will still be difficult with prolonged geopolitical conflicts and fuel prices remaining at a high level of USD 104/barrel. USD interest rates remain high, affecting foreign exchange rates and input costs. Global passenger volume is forecast to recover completely compared to 2019, but Asia- Pacific needs more time, especially Northeast Asia. Macro risks and airport infrastructure overload are still latent. The issue of engine manufacturer Pratt & Whitney recalling engines globally has caused a shortage of aircraft, affecting operations. Domestically, Vietnam's economy is expected to grow steadily, the domestic aviation market is expected to grow by 6%-8%. This is the basis for Vietnam Airlines to continue to set a large target of reducing the remaining losses and aiming to balance revenue and expenditure. To achieve this goal, Vietnam Airlines has implemented many synchronous solutions. For the international market, the airline will expand its international flight network with new routes to Western Europe and Southeast Asia in 2024. For the domestic market, the airline will adjust flight frequencies to suit market demand, maintain the main market share on key routes and increase capacity on tourist routes. Enterprises proactively develop operating plans according to planning scenarios, improve product and price management capacity. Regarding the fleet, Vietnam Airlines focuses on preparing to invest in the narrow-body aircraft project, the A321ceo aircraft configuration conversion project to improve operational efficiency, meet market demand and develop on the basis of the orientation of restructuring the fleet. The Corporation will also complete preparations for investing in the Synchronized Service Complex at Long Thanh International Airport to move to the investment implementation phase. Vietnam Airlines aims for 5-star standards, expands the "Service Upgrade" program to inspire and promote initiatives. At the same time, closely maintain cost savings and management programs, seek opportunities to negotiate reductions, extensions and postponements of payments. To maintain cash flow balance, Vietnam Airlines accelerates divestment progress and implements measures to optimize costs, revenue and effective financial management. The company continues to restructure to overcome the consequences of the COVID-19 pandemic and create a foundation for sustainable development.

Phan Trang

Source: https://baochinhphu.vn/vietnam-airlines-dat-muc-tieu-doanh-thu-hon-105000-ty-dong-nam-2024-102240622085648213.htm