Fleet reduction, revenue still increases
At the 2024 Annual General Meeting of Shareholders of Bamboo Airways Joint Stock Company held on July 17, Mr. Phan Dinh Tue, Chairman of the Board of Directors of Bamboo Airways, said that in 2023, the company had a recovery in growth in production and business activities.
Overview of Bamboo Airways' 2024 Annual General Meeting of Shareholders.
Although Bamboo Airways' fleet decreased by 19% compared to 2022 due to fleet restructuring, the company's net revenue from sales and service provision increased by 6% compared to 2022, reaching more than VND 12,300 billion.
Of which, the seat occupancy rate increased to 87%, average passenger revenue increased by 14%, and ancillary revenue increased by 25%.
Bamboo Airways' profit after corporate income tax in 2023 has been brought to a positive level of nearly 237 billion VND (in 2022, the accumulated loss was more than 19,000 billion VND).
The loss ratio to total net revenue has decreased from 46% in 2022 to 29% in 2023. The company's total liabilities have decreased by about VND2,000 billion in 2023. As of now, Bamboo Airways no longer owes any aircraft lease payments.
"Basically, the airline has completed the restructuring phase of its fleet. Currently, the company is focusing on operating a single-fleet fleet, with 8 narrow-body A320/A321 aircraft," said Mr. Tue.
To optimize operating costs, Bamboo Airways has changed its ground service provider from SAGS HGS to Pacific Airlines and implemented self-service, thereby saving 20% of ground service costs for each flight.
The company also successfully negotiated the conversion of its Passenger Service System (PSS) from Amadeus to Navitaire, which is expected to be implemented in April 2025. This will help the company save at least 20 million USD (about more than 508 billion VND) in the next 5 years.
2024, the last year of business loss
In 2024, Bamboo Airways expects total revenue to reach VND4,857 billion and reduce losses to VND1,387 billion. It is expected that the company will operate 9 narrow-body Airbus aircraft, which can increase to 12 by the end of 2024 and 18 by the end of 2025 if market conditions allow.
At the same time, Bamboo Airways aims to increase the average occupancy rate from 81% to 85%, maintaining an average operating hour of over 12 BH/day/airplane.
Based on the fleet added from now until the end of the year, Bamboo Airways plans to increase the frequency of operating routes, reopen some domestic routes such as: Ho Chi Minh City - Da Lat, Ho Chi Minh City - Thanh Hoa, Ho Chi Minh City - Phu Quoc... and study the re-exploitation of some regular international routes such as Ho Chi Minh City - Bangkok (Thailand).
According to Bamboo Airways' leaders, to ensure operational needs, the airline needs to be provided with an additional capital of about VND 1,690 billion in the last 7 months of 2024, through capital mobilization solutions from credit institutions and domestic and foreign investors in accordance with the law.
Affirming that restructuring aviation is a difficult task, Bamboo Airways General Director Luong Hoai Nam emphasized that the airline still aims for 2024 to be the last year of loss-making operations. From 2025, the business will break even and move towards profitability in the following years. Within 3 years, the company will be listed on the stock exchange.
"Hopefully, market conditions will be more favorable for the company to have positive business results, bringing value to shareholders and a large number of passengers," Mr. Nam shared and emphasized that with solid progress after the first phase of restructuring and clear development strategies, Bamboo Airways promises to continue to rise, affirming its position in the aviation market.
Source: https://www.baogiaothong.vn/bamboo-airways-dat-muc-tieu-len-san-chung-khoan-sau-nam-2025-192240717155211312.htm
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