Bamboo Airways is no longer in debt for aircraft leasing.

Mr. Luong Hoai Nam, General Director of Bamboo Airways, emphasized the goal of making 2024 the last year of operating at a loss, breaking even from 2025 onwards, and aiming for profitability in subsequent years. As of now, Bamboo Airways has no outstanding aircraft lease payments.

At the shareholders' general meeting held on the morning of July 17th, Mr. Phan Dinh Tue - Chairman of the Board of Directors Tre Viet Aviation Joint Stock Company Bamboo Airways has reported on its 2023 business results, restructuring results, and 2024 business plan, with several noteworthy details regarding the company's growth recovery.

Although Bamboo Airways' fleet decreased by 19% compared to 2022 due to the implementation of measures. restructuring Despite a robust fleet, the company's net revenue from sales and services increased by 6% compared to 2022, reaching nearly VND 12,400 billion. Specifically, the seat occupancy rate increased to 87%, average passenger revenue increased by 14%, and ancillary revenue increased by 25%. Bamboo Airways' after-tax profit in 2023 reached a positive VND 236.8 billion (compared to -VND 19,798.4 billion in 2022).

The 2024 Annual General Meeting of Shareholders was held on the morning of July 17th.

In 2023, the loss-to-net-revenue ratio decreased from 46% in 2022 to 29%. The company's total liabilities decreased by approximately VND 2 trillion in 2023. As of now, Bamboo Airways has no outstanding aircraft lease payments.

Essentially, Bamboo Airways has completed its fleet restructuring phase. Currently, the company is focusing on operating a single-carrier fleet, with 8 A320/A321 narrow-body aircraft.

To optimize operating costs, Bamboo Airways has switched its ground handling service provider from SAGS HGS to Pacific Airlines and implemented self-service, thereby saving 20% on ground handling costs per flight. The company has successfully negotiated the transition to a Passenger Service System (PSS), expected to be implemented in April 2025. This will help the company save at least US$20 million (approximately over VND 500 billion) over the next five years.

This year, Bamboo Airways expects total revenue to reach nearly VND 4,860 billion and losses to decrease to approximately VND 1,390 billion. The company plans to operate 9 Airbus narrow-body aircraft, potentially increasing to 12 by the end of the year and 18 by the end of 2025 if market conditions permit. Bamboo Airways aims to increase its average occupancy rate from 81% to 85%...

Based on the additional fleet capacity from now until the end of the year, Bamboo Airways plans to increase the frequency of its existing routes, reopen some domestic routes such as Ho Chi Minh City - Da Lat, Ho Chi Minh City - Thanh Hoa , Ho Chi Minh City - Phu Quoc… and explore resuming some regular international routes such as Ho Chi Minh City - Bangkok (Thailand).

To ensure operational needs are met, Bamboo Airways requires an additional capital of approximately VND 1,690 billion in the remaining seven months of this year, through fundraising solutions from credit institutions and domestic and foreign investors in accordance with the law.

At the event, the General Shareholders' Meeting approved several important items with a high percentage of consensus.

General Director Luong Hoai Nam He emphasized: "Restructuring the airline is a very difficult task, but we still aim for 2024 to be the last year of operating at a loss. From 2025 onwards, we aim to break even and move towards profitability in the following years. Within three years, we want to list the company on the stock exchange. These are very ambitious goals, but the Board of Directors and the management team are committed to doing their best to achieve them, hoping that market conditions will be more favorable so that the company can achieve positive business results, bringing value to shareholders and a large number of passengers.”

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