Growth in int’l passengers helps promote airlines' growth
The remarkable growth in international tourist arrivals has contributed to positive business results for domestic airlines in the first six months of 2024.
Accordingly, the consolidated pre-tax profit of the national flag carrier Vietnam Airlines topped VND5.67 trillion (nearly US$226 million). Meanwhile, Vietjet earned VND1.31 trillion in consolidated pre-tax profit, surging by 433% year-on-year, exceeding the annual plan by 21%.
These are positive results in the context of high fuel prices, unfavourable exchange rate fluctuations, low seasonal demand in the second quarter, and a shortage of aircraft due to global engine recalls by Pratt & Whitney.
Airlines have effectively leveraged the growth of the international passengers to promote recovery.
Vietnam Airlines reported consolidated revenue reached over VND53.12 trillion in the reviewed period, up 20% year-on-year.
Meanwhile, Vietjet’s cumulative revenue and pre-tax profit from aviation transport totaled nearly VND32.9 trillion and over VND1.17 trillion, representing surges of 31% and 690% year-on-year, respectively. Its cumulative business revenue topped VND34 trillion and pre-tax profit VND1.31 trillion, up 15% and 433% year on year, respectively.
According to Saigon Ratings, an independent credit rating organisation, Vietjet has maintained a long-term credit rating of vnBBB- with a "stable outlook”. Given the airline’s remarkable recovery and proactive planning during the past two years, Vietjet is expected to make breakthrough developments faster and more sustainably in the medium to long term.
The airlines have also added new international routes in the period, ready to meet transportation demand and plans to further expand their international networks in the future, towards promoting the country’s socio-economic development.
By showcasing Vietnam to the world through aviation and tourism promotion activities, airlines have made positive contributions to improving the image and position of the country and its people on the international stage, said the Civil Aviation Authority of Vietnam (CAAV).
