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Vietnam Airlines records revenue growth in Q2/2023

The Saigon Times

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HCMC – Vietnam Airlines posted a rebound in revenue and achieved gross profit for the second quarter in a row though it has yet to report net profit this year due to higher input costs and financial risks.

In the second quarter of the year, the national flag carrier reported total revenue of over VND20.6 trillion from sales and services, up 12.3% year-on-year, and gross profit of VND929 billion.

This is the seventh quarter in a row that Vietnam Airlines’ revenue has grown, indicating the recovery of the carrier and its efforts to improve its business performance.

In the first half of 2023, the airline made VND44 trillion in revenue, surging 47% year-on-year. Its gross profit reached nearly VND2.9 trillion, showing a more positive performance compared to its gross losses in the same period last year.

However, after deducting all expenses, Vietnam Airlines recorded an after-tax loss of over VND1.33 trillion in the first six months of 2023, equivalent to only one-quarter of the losses incurred in the first half of 2022.

In the second quarter alone, the carrier reduced its loss by 50%, compared to the same period last year, mainly due to the positive business performance of its subsidiaries and transportation businesses.

The after-tax loss was attributed to financial risks and increases in input costs, such as rising fuel prices, exchange rates, and interest rates, according to the announcement made by the airline on July 31.

Vietnam Airlines Group, which comprises Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company (VASCO), announced that it transported 11.8 million domestic and international passengers in the first half of 2023, rising 28.2% year-on-year and securing 43% market share.

Notably, Vietnam Airlines alone carried 9.94 million passengers, increasing 25% and holding 36% market share.

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