Bamboo Airways begins to make a profit, needs 1,690 billion VND in capital to maintain operations

Bamboo Airways is going through a difficult period, aiming to end losses in 2024 - Photo: C.TRUNG

This is the latest information announced by Bamboo Airways at the 2024 annual shareholders' meeting held in Ho Chi Minh City on July 17.

Bamboo Airways boss says airline has overcome difficulties and started making profits

Mr. Phan Dinh Tue - Chairman of the Board of Directors of Bamboo Airways - said that Bamboo Airways' fleet will decrease by 19% compared to 2022 due to fleet restructuring.

Net revenue from sales and service provision increased by 6% compared to 2022, reaching more than 12,300 billion VND. Of which, the seat occupancy rate increased to 87%, average passenger revenue increased by 14%, and ancillary revenue increased by 25%.

Bamboo Airways' profit after corporate income tax in 2023 has been brought to a positive level of VND 236.8 billion compared to a negative level of VND 19,798 billion in 2022.

"The company's total liabilities will decrease by about VND2,000 billion in 2023. As of now, Bamboo Airways no longer owes any aircraft rental fees" - Bamboo Airways informed.

Mr. Luong Hoai Nam - General Director of Bamboo Airways - said that restructuring aviation is very difficult work, but the airline still sets the goal that 2024 will be the last year of business loss.

From 2025, the company will break even and become profitable in the following years. Within 3 years, the company will be listed on the stock exchange.

According to the plan, in 2024, Bamboo Airways will have total revenue of 4,857 billion VND and loss reduced to 1,387 billion VND.

Although the goal is to "brighten up" in the coming time, to ensure operational needs, Bamboo Airways said it still needs to be provided with an additional capital of about 1,690 billion VND in the last 7 months of 2024. The capital source is through capital mobilization solutions from credit institutions and domestic and foreign investors in accordance with the law.

The fleet will consist of nine Airbus aircraft, increasing to 12 by the end of the year, and even 18 aircraft by the end of 2025 if market conditions permit.

Save $20 million by switching service providers

Bamboo Airways has changed its ground service provider from SAGS, HGS to Pacific Airlines and implemented self-service. This saves 20% of ground service costs for each flight.

At the same time, the company successfully negotiated the conversion of the passenger service system (PSS) from Amadeus to Navitaire, expected to be implemented in April 2025.

Bamboo Airways said it will save at least 20 million USD (about 508 billion VND) in the next 5 years.

Source: https://tuoitre.vn/bamboo-airways-bat-dau-co-lai-can-1-690-ti-dong-von-de-duy-tri-hoat-dong-20240717172749181.htm