Vietnam Airlines to achieve revenue of nearly 1 billion USD in Q3 2023

According to the recently released consolidated financial report, Vietnam Airlines Corporation (Vietnam Airlines) recorded revenue of more than VND23,750 billion (nearly USD1 billion), an increase of over 11% over the same period last year. In the third quarter of 2023 alone, Vietnam Airlines Group operated nearly 40,000 flights, transporting more than 6.5 million passengers, including 1.8 million international passengers, double that of the same period in 2022. Total cargo volume reached nearly 60,000 tons, an increase of 19% over the same period. "This is also the airline's highest quarterly revenue since the COVID-19 pandemic broke out in early 2020 and is close to the average quarterly revenue of 2019 before the pandemic," said a representative of Vietnam Airlines.

Vietnam Airlines attributed this result to the good recovery of the European, Australian and American markets. In the past 3 months, the airline transported 6.5 million passengers, including 1.8 million international passengers - double the same period in 2022.

Although revenue recovered strongly in the quarter with the peak summer tourism season, Vietnam Airlines could not escape losses because the cost of capital also increased and financial and sales expenses increased sharply. In the third quarter, the airline lost more than VND 2,130 billion before tax, down more than VND 300 billion compared to the same period in 2022. In the first 9 months of the year, the corporation's revenue reached about VND 68,000 billion, up 32%. Vietnam Airlines still lost approximately VND 3,330 billion, but it was down more than half compared to the same period last year.

Vietnam Airlines also acknowledged that its transportation business has not yet balanced its revenue and expenditure because the international market has not fully recovered, especially key markets such as China, Japan, Hong Kong, Taiwan, etc. and war factors, financial risks and input costs such as fuel prices, exchange rates, and interest rates continue to negatively affect production and business results.

Vietnam Airlines said that the Corporation Restructuring Project until 2025 has been reported to shareholders and competent authorities for approval. According to this project, in the coming years, Vietnam Airlines will synchronously implement solutions to overcome the situation of consolidated losses and negative equity, such as improving business results, restructuring assets and financial investment portfolio to increase income, cash flow and preparing the necessary conditions to implement the plan to issue shares to increase equity after approval. The airline plans to hold a general meeting of shareholders in November this year./.

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