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Trade - Service
Nov 02, 2018 / 06:29

Vietnam Airlines reports net profit down 13% in 9 months

Ngoc Thuy

During the January – September period, total revenue of the airline stood at VND73.50 trillion (US$3.15 billion), up 18% year-on-year.

National flag carrier Vietnam Airlines posted a net profit of VND1.96 trillion (US$84.24 million) in the first nine months of 2018, down 13% year-on-year and 3% higher than the year’s estimate, according to the airline’s quarterly consolidated financial statement. 
 
Illustrative photo.
Illustrative photo.
During the January – September period, total revenue of the airline stood at VND73.50 trillion (US$3.15 billion), up 18% year-on-year. Of the total, revenue from air transportation reached VND59.83 trillion (US$2.57 billion), accounting for 81% of the national carrier’s revenue. 

Financial income in the period climbed 36% year-on-year to VND897 billion (US$38.55 million), while financial expenses increased by VND326 billion (US$14.01 million) to VND2.94 trillion (US$126.35 million). 

As of June 30, Vietnam Airlines’ total assets value reached VND84.33 trillion (US$3.62 billion), while the owner' equity was reported at VND17.22 trillion (US$739.99 million), down 4.75% and 1.18% compared to the beginning of 2018, respectively. 

Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).

In 2010-2016, the Vietnamese air transportation market witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed the Vietnam Civil Aviation Administration. 

According to the Tourism Advisory Board and the Private Economic Development Research Board, the tourism sector sets to receive 17-18 million foreign tourists and 82 million domestic visitors by 2020, but the targets is being hindered due to the underdevelopment of the local civil aviation sector.

Meanwhile, the International Air Transport Association estimated that between now and 2020, Vietnam’s passenger transportation is expected to rise by 16% annually, and from 2020 to 2030, by 8%. Cargo transportation will increase by around 18% until 2020, and 12%between 2020 and 2030. The growth will make Vietnam become the world's fifth fastest-growing aviation market by 2035.

A recent World Tourism & Travel Council also report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from the US$18.4 billion recorded last year.

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