Hanoi, August 15, 2018 – Vietnam Airlines has today announced a profit rise of 87 per cent in half-year on year results compared to the same period last year, pocketing $82.4 million (VND 1.92 trillion) since January 2018. The airline maintained its remarkable performance due to increased operational flexibility in the transportation of passengers and cargo, given stagnation in the development of air transport markets and rising fuel prices at an average of $82/barrel.
Vietnam Airlines’ total consolidated revenue was estimated at $2.1 billion (VND 49.8 trillion) while the parent company's revenue was estimated at nearly $1.6 billion (VND 36.3 trillion). The Group’s pre-tax consolidated profit reached $57.8 million (VND 1.39 trillion), more than double the planned figure.
In the first six months of 2018, Vietnam Airlines operated 72,800 flights with a high on time performance of 90 per cent; and transported 13.7 million passengers - an increase of four per cent compared to the same period last year. Cargo transported reached 167,000 tons, up 8.5 per cent over the same period, and close to 100 per cent of the planned targets for both the international and domestic markets.
The application of technology has enabled Vietnam Airlines to not only provide the most convenient services for passengers, but also contribute to reducing the pressure on airport infrastructure. The rate of self-check-in at Tan Son Nhat, Noi Bai and Da Nang airports has reached high levels, at 42.4 per cent, 39 per cent and 29.2 per cent respectively.
On 22 May 2018, Vietnam Airlines completed the auction of purchase rights for additional shares of the State. This year to date has also seen the airline continue to enhance its cooperation with Japan’s largest airline- strategic partner ANA Holding Inc.
Restructuring human resources is used as the approach to reduce work force and improve productivity. As of June 30, 2018, number of employees comprise 6,685 people - 3 per cent fewer than the planned target and 2 per cent fewer than the same period in 2017. According to AAPA, the productivity of Vietnam Airlines in terms of passenger numbers is one of the top three airlines worldwide with enhanced service quality, proving positive outcome of the selected method. Meanwhile, employee welfare has been improving by an average of 8.8 per cent per annum during 2012-2018. This is also the period Vietnam Airlines completes its plans for salary reform.
By applying digital technology across the business, Vietnam Airlines will be equipped to address the fast-changing air travel landscape. Customers will benefit from a seamless experience, from flight search, online booking and check-in, to purchasing ancillaries online and after-sales service through Vietnam Airlines’ continuing expansion of agreement with Sabre Corporation. Moreover, payment via QR code through the local payment gateway Napas and VNPay brings extra convenience, speed and security to customers.
In the last six months of 2018, the air transport market is predicted to continue to slow down as fuel prices have not shown signs of decline. Vietnam Airlines has also implemented several solutions to save fuel and improve technical capacity.
From July to December 2018, Vietnam Airlines is researching the feasibility of operating regional jets to fly short local routes such as Hanoi - Vinh / Dien Bien / Dong Hoi and Ha Noi - Con Dao - Ho Chi Minh City along with ATR72 aircraft, to meet increasing customer demand.
Vietnam Airlines continues to provide enhanced service standards across all cabin types, and dedicated check-in counters for priority passengers. Premium Economy is available on routes between Vietnam and Japan, Australia and Western Europe, while Business Class is offered on international flights to the UK, France, Germany, Australia and Russia with new pyjamas, blankets and bed linens providing extra comfort and a luxurious experience for long haul journeys. Furthermore, cultural values are embedded in the newly-designed Japanese-style Business Class tableware on Japan routes, representing a harmonious combination of Japanese and Vietnamese culture.
In the last six months of 2018, Vietnam Airlines will also increase charter capital by issuing more shares to existing shareholders. HVN shares will be listed on Ho Chi Minh City Stock Exchange (HOSE). These are effective actions to proactively guarantee credit capital for Vietnam Airlines investment projects well as to reduce State ownership during 2019-2020 period.