Vietnam Airlines gains positive financial results

General director of Vietnam Airlines spoke at the 2023 annual general meeting of shareholders. — Photo courtesy of the corporation

HÀ NỘI — Vietnam Airlines achieved positive financial results, with total consolidated revenue reaching VNĐ71.7 trillion (over US$3 billion) by the end of 2022. The figure was announced in its 2023 annual general meeting of shareholders held late last week.

This exceeded the plan set by the general meeting of shareholders by 20 per cent and was 2.4 times higher than the results in 2021. Additionally, the number of consolidated losses decreased compared to the plan reported at the 2022 annual general meeting of shareholders.

In terms of passenger transportation, Vietnam Airlines carried 18.24 million passengers, surpassing the planned number by 7.5 per cent. The international tourist output reached more than 2.47 million visitors, while domestic visitors reached 15.77 million. These figures exceeded the planned targets by 9 per cent and represented a 14.2 per cent increase compared to 2019.

The year 2022 presented significant challenges for the airline industry, including rising input costs, particularly fuel costs. The average fuel price in 2022 was US$124.4 per barrel, which was $14.1 higher than planned ($110.26 per barrel). This increase led to fuel costs rising to approximately VNĐ2.4 trillion. Compared to 2019, fuel costs increased by about VNĐ7.6 trillion. Moreover, the USD appreciated significantly against other currencies in the past two decades, resulting in higher input costs due to the high USD/VND exchange rate.

Furthermore, 2022 was marked by major global changes in politics, economics, and society. The international air transport market began reopening on March 15, but many countries still had entry and quarantine regulations in place, which made passengers hesitant to travel. China’s “zero-COVID” policy froze its market, and conflicts between Russia and Ukraine, along with the potential risk of a European economic recession, added to the challenging environment.

Despite these difficulties, Vietnam Airlines proactively developed plans for various scenarios and operated its production and business activities in line with market recovery. The company prioritised safety in epidemic prevention and control while balancing operational efficiency. By the end of 2022, Vietnam Airlines had restored its entire domestic flight network compared to pre-pandemic times and resumed operations on over 70 per cent of international routes. Transport output exceeded the yearly plan by 7-8 per cent.

The corporation also implemented cost-cutting measures to enhance efficiency. Total cost reductions in 2022 amounted to approximately VNĐ7.2 trillion, with efforts such as negotiating price reductions and implementing savings initiatives contributing to cost savings of around VNĐ4.294 trillion.  VNS