At its recent general meeting of shareholders, national carrier Vietnam Airlines unveiled its ambitious target of transporting over 24 million passengers in 2018 while achieving a forecast net profit of US$104 million, slightly down over 2017, due to increased competition.
2017 was already a brilliant year for national carrier Vietnam Airlines which exceeded several of its earlier forecasts. The national airline last year carried more than 22 million passengers. Its profit before tax reached to more than VND3,100 billion (US$134 million ), which is 92.6% more than its objective.
In addition to its 4-star status attributed by Skytrax consulting, Vietnam Airlines has been one of the ten most punctual air carriers in the world last year.
According to Brand Finance, Vietnam Airlines financial market index was estimated in 2017 at US$310 million, an increase of more than 60% compared to 2016.
During its third general meeting of shareholders hosted on May 16, Vietnam Airlines set a new ambitious target. The carrier hopes to carry more than 24.3 million passengers in 2018. However, while its total turnover should reach more than VND97 billion (more than US$4.2 billion billion), its pre-tax profit is likely to be slightly down compared to 2017. The management talks of VND2,400 billion, equivalent to US$104 million. This result is due to increased competition in Vietnamese skies as well as a recent surge in oil prices.
With performance in 2017, Vietnam Airlines applied a dividend payout ratio of 8%, 2 percentage points higher than in 2016. In the first quarter of 2018, the total revenue of Vietnam national carrier was estimated at nearly VND25,500 billion (equivalent to US$ 1.1 billion). Profit before tax reached VND1.460 billion (over US$63.4 million), 6.2% above its target.
Vietnam Airlines is committed to continuing the measures to ensure security, improve the quality of its services and ensure the interests of its shareholders.
Regarding new services, the airline continues to put more Airbus A350 in service. From Hanoi, the A350 now serves Beijing, Frankfurt, Ho Chi Minh City, Nagoya, Paris CDG, Seoul, Shanghai Pudong and Tokyo Haneda as well as Narita. From Ho Chi Minh City, the brand new aircraft flies in the summer timetable to Frankfurt, Osaka, Paris CDG, Seoul and Shanghai Pudong.