Mr. Luong Hoai Nam - General Director of Bamboo Airways - emphasized the goal of striving for 2024 to be the last year of business loss, from 2025 to break even and move towards profit in the following years. Up to now, Bamboo Airways no longer owes any aircraft rental fees.
At the general meeting of shareholders (GMS) held on the morning of July 17, Mr. Phan Dinh Tue - Chairman of the Board of Directors Bamboo Airways Joint Stock Company (Bamboo Airways) - reported on 2023 business results, restructuring results and 2024 business plan with many notable information about the company's growth recovery.
Although Bamboo Airways' fleet will decrease by 19% compared to 2022 due to the implementation of restructuring Although the fleet is strong, the company's net revenue from sales and service provision increased by 6% compared to 2022, reaching nearly VND 12,400 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 was brought to a positive level of VND 236.8 billion (compared to -19,798.4 billion in 2022).
In 2023, the loss ratio to total net revenue decreased from 46% in 2022 to 29%. The company's total liabilities decreased by about VND2,000 billion in 2023. As of now, Bamboo Airways no longer owes any aircraft rental fees.
Basically, Bamboo Airways has completed the restructuring phase of its fleet. Currently, the Company is focusing on operating a single-family fleet, with 8 narrow-body A320/A321 aircraft.
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 has successfully negotiated the conversion of the passenger service system (PSS), expected to be implemented in April 2025. This will help the company save at least 20 million USD (about more than 500 billion VND) in the next 5 years.
This year, Bamboo Airways expects total revenue to reach nearly VND4,860 billion and losses to decrease to nearly VND1,390 billion. The company plans to operate 9 narrow-body Airbus aircraft, which could increase to 12 by the end of the year and 18 by the end of 2025 if market conditions allow. Bamboo Airways aims to increase its average occupancy rate from 81% to 85%...
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).
To ensure operational needs, Bamboo Airways needs to be provided with an additional capital of about VND 1,690 billion in the last 7 months of this year, through capital mobilization solutions from credit institutions and domestic and foreign investors in accordance with the law.
At the event, the General Meeting of Shareholders approved many important contents with a high consensus rate.
General Director Luong Hoai Nam emphasized: "Restructuring aviation is a very difficult task, but we still set the goal that 2024 will be the last year of loss-making business. From 2025, we will break even and move towards profit in the following years. Within 3 years, the company will be listed on the stock exchange. These are very ambitious goals, but the Board of Directors and the Executive Board are committed to doing their best to achieve them, hoping that market conditions will be more favorable for the company to have positive business results, bringing value to shareholders and a large number of passengers."
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