Vietnam Airlines completes privatisation as profits soar

Vietnam Airlines completes privatisation as profits soar

Vietnam Airlines has announced record profits of 2,500 billion Vietnamese dong (US$114 million) for the 2016 financial year.

The company attained its excellent results having taken advantage of opportunities to grow in the domestic market and implemented flexible solutions to deal with challenges such as the economic slowdown, terrorism in Europe and overcrowded infrastructures.

The total consolidated revenue of Vietnam Airlines and its subsidiaries in 2016 is estimated at over US$3.45 billion, an increase of ten per cent year-on-year.

The company’s total consolidated profit before taxes is estimated at nearly US$114, up 140 per cent year-on-year and surpassing the annual target by seven per cent.

Vietnam Airlines estimates its total revenue to be nearly US$2.68 billion, resulting in a total pre-tax profit of US$72.7 million, up 5.6 times year-on-year.

ADVERTISEMENT

In 2016, Vietnam Airlines safely operated over 133,000 flights with 20.6 million passengers, an increase of 18.7 per cent from 2015.

The airline also carried over 264 thousand tons of cargo, surpassing the year’s target of ten per cent.

By sharing resources with carriers such as Jetstar Pacific and VASCO, Vietnam Airlines has established an efficient flight network, offering a variety of products and services that effectively meet market demands.

Vietnam Airlines is focused on offering its four-star service on key domestic and international routes in south-east Asia, north-east Asia, Europe and Australia while Jetstar Pacific is developing competitively priced services on domestic and short-haul international routes.

At the same time, VASCO provides general aviation services to local airports which cannot accommodate large aircrafts.

In 2016, the final steps in Vietnam Airlines’ equitisation process were accomplished.

Vietnam Airlines has signed cooperation contracts with foreign investors, the Japanese ANA Holdings Inc.

The participation of Japanese partners in operation activities will help Vietnam Airline improve its management capacity and product development, extend flight networks and enhance competitiveness, realising the long-term sustainable development plan for in the future.

Vietnam Airlines has also completed the capital handover between its state-owned enterprise and the joint-stock company.

The Hanoi Stock Exchange has approved the registration of the airline’s shares for trading on the UPCoM exchange.

HVN shares have been traded officially on the UPCoM exchange for the first time today, the first trading session of the year, January 3rd, 2017.