Vietnam Airlines’ report shows that in December 2023, the Corporation recorded a profit of VND 26.57 billion from transportation activities, while in the same period in 2022, a loss of VND 282 billion was recorded.
The parent company’s fourth quarter 2023 business results report recorded sales and service provision revenue reaching 17,951 billion VND, an increase of 29.4% compared to the fourth quarter of 2022. Of which, domestic revenue increased by 14%, international revenue increased by 49.1%. This resilience comes from increased shipping volume as the market gradually recovers.
The total costs incurred in the last quarter of the Parent Company increased by 20.54% compared to the fourth quarter of 2022, mainly due to increased cost of goods sold, corresponding to increased output. The growth rate of revenue and other income is faster than the growth rate of costs, so the loss following tax decreased by more than 125 billion VND compared to the same period last year. Meanwhile, subsidiaries such as NCS, VACS, NCTS, Skypec… are more profitable, causing the consolidated loss in the fourth quarter of 2023 to decrease to 1,457 billion VND, equivalent to 42% compared to the same quarter.
Vietnam Airlines. Photo: VNA
Vietnam Airlines’ business activities in the last quarter of 2023 improved, causing the financial picture for the whole year to gradually change to a brighter color. The Parent Company’s 2023 sales and service provision revenue will reach VND 69,038 billion, an increase of 40% compared to 2022 results. The Parent Company’s gross profit on sales and service provision in 2023 will reach VND 2,087 billion. ; Loss following tax is only VND 4,798 billion, down 46% compared to 2022.
Consolidated revenue from sales and service provision in 2023 will reach 92,147 billion VND, an increase of 30.16% compared to 2022. After deducting the cost of goods sold, Vietnam Airlines will achieve a consolidated gross profit of 3,939 billion VND (year 2022 loss of 2,876 billion VND). After one year, the Corporation has reduced its loss by 5,706 billion VND, equivalent to a decrease of 51% compared to 2022, to only negative 5,516.7 billion VND.
Explaining production and business activities, Mr. Le Hong Ha, General Director of Vietnam Airlines said, “Recently, Vietnam Airlines has proactively deployed a series of solutions to maintain business operations.” As a result, business results improved but were not comprehensive and rapid in the context of general economic difficulties, weak transport demand, and impacts from damage caused by the covid epidemic and financial risks arising. (exchange rates, interest rates), rising raw material prices, political conflicts in some countries around the world…”.
According to Mr. Ha, it can be seen that Vietnam Airlines’ business results changed clearly in the last months of the year.
Sharing regarding revenue, Mr. Ha said: “Total revenue from air transport activities this month reached 6,673.7 billion VND, an increase of 23% compared to December 2022.”
“Most costs from human resources, marketing – sales, administration… are much lower than planned. Profit from transportation business in December 2023 reached 26.57 billion VND, for see positive signs in achieving the goal of balancing air transport revenues and expenditures,” Mr. Ha explained.
To date, Vietnam Airlines has completed the restructuring project for the period 2022 – 2025, and is reporting to shareholders and competent authorities for approval.
In 2024, Vietnam Airlines will synchronously implement solutions to quickly recover and improve business results. The major goal in parallel is to restructure assets and financial investment portfolio to increase income, cash flow and prepare the necessary conditions to implement the plan to issue shares to increase equity. following being approved by the competent authority.
It is forecasted that objective conditions will also be more favorable, the international market will gradually recover, Vietnam Airlines’ production and business activities are expected to achieve positive results, gradually stabilize and are preparing the conditions. ready to develop in a new phase.
