Vietnam Airlines records a profit from transportation activities

Vietnam Airlines‘ aircraft parked at Nội Bài airport. – Photo of Vietnam Airlines

HÀ NỘI — Vietnam Airlines group for the fourth quarter of 2023 achieved improved indicators and recorded a profit from transportation activities, according to its financial report released on January 31.

In December 2023, the airline reported a profit of VNĐ26.57 billion, compared to a loss of VNĐ282 billion in the same period in 2022.

The report showed that sales and service provision revenue for the fourth quarter of 2023 reached VNĐ17.9 trillion, representing a 29.4 per cent increase compared to the fourth quarter of 2022. Domestic revenue increased by 14 per cent, while international revenue increased by 49.1 per cent. This improvement is attributed to an increased shipping volume as the market gradually recovered.

Although the total costs in the last quarter of 2023 increased by 20.54 per cent compared to the same period in 2022, the growth rate of revenue and other income outpaced the growth rate of costs. As a result, the loss after tax decreased by more than VNĐ125 billion compared to the same period the previous year.

The report also mentioned that subsidiaries such as NCS, VACS, NCTS and Skypec were more profitable, contributing to a decrease in the consolidated loss for the fourth quarter of 2023 to VNĐ1.45 trillion, a reduction of 42 per cent compared to the same quarter.

Business activities in the last quarter of 2023 showed improvement, leading to a brighter financial outlook for the entire year. The sales and service provision revenue for the parent company in 2023 is projected to reach VNĐ69 trillion, a 40 per cent increase compared to 2022.

The parent company’s gross profit on sales and service provision in 2023 is expected to be over VNĐ2 trillion, and the loss after tax is projected to be VNĐ4.7 trillion, down 46 per cent compared to 2022.

Vietnam Airlines faced challenges such as general economic difficulties, weak transport demand, and the impact of the COVID-19 pandemic, as well as financial risks arising from factors such as exchange rates, interest rates, rising raw material prices and political conflicts in countries around the world. Despite these challenges, the group implemented various solutions, resulting in improved business results, although they were not comprehensive and rapid. — VNS