In addition to being able to compare the business results of Vietnam Airlines with Vietjet Air, the recently announced financial reports for the fourth quarter of 2024 of the two leading airlines in Vietnam also revealed the income of the leaders of both sides.
Vietnam Airlines' profits have recovered positively in 2024 - Photo: VNA
In the fourth quarter of 2024, Vietnam Airlines (HVN) made a big profit again compared to the loss in the same period in 2023. Vietjet Air (VJC) did not make a big profit in the fourth quarter but also had a "brilliant" year in 2024 when its after-tax profit was many times higher than the previous year.
" Compare" business results of Vietnam Airlines with Vietjet Air
Vietnam Airlines' independent report recorded revenue in the fourth quarter of 2024 reaching VND 26,625 billion, an increase of nearly 12% over the same period.
Cash brought in more in the context of aviation recovery, but the cost of goods sold decreased by 7%, HVN's gross profit reached more than 4,377 billion VND. In the fourth quarter of 2023, the airline still had a gross loss of nearly 190 billion VND when selling goods below cost.
Another positive point is that HVN's interest expense decreased from VND 380 billion in the fourth quarter of 2023 to VND 246 billion in the fourth quarter of 2024.
Therefore, despite the increase in business management and sales costs and losses in joint ventures, the national airline still recorded a profit after tax of VND1,003 billion in the last quarter of the year, compared to a negative VND1,982 billion in the same period.
Last year, Vietnam Airlines' consolidated net revenue reached VND105,786 billion, up 16% compared to 2023. Profit after tax was VND7,267 billion, compared to a large loss of VND5,631 billion in the same period.
HVN's business results recovered higher than before the pandemic - Data: Consolidated BTCT
Meanwhile, at Vietjet Air, the Q4-2024 report recorded revenue at VND19,796 billion, up 35% over the same period. In contrast to VNA's decline, VJC's cost of goods sold this quarter increased by 24%, reaching VND18,786 billion.
However, VJC still recorded a gross profit of more than VND1,010 billion, instead of a loss of nearly VND500 billion in the fourth quarter of 2023. VJC's interest expense also increased from VND596 billion to VND826 billion. Meanwhile, financial revenue decreased sharply.
As a result, VJC's after-tax profit in the last quarter of the year was only over VND21 billion, higher but not significantly higher than the same period in 2023.
Due to better previous quarters, VJC's after-tax profit for the whole year of 2024 still reached VND 1,426 billion, nearly 6.2 times higher than in 2023. VJC's revenue alone reached a record of VND 71,858 billion, up 23% over the previous year.
Vietjet Air's profits have not regained their "form" compared to before the pandemic - Data: Consolidated financial statements
If we compare the ancillary revenue structure between Vietjet Air and Vietnam Airlines, we can see that the low-cost airline is bringing in more money.
In the fourth quarter, VJC had nearly VND6,600 billion in revenue from ancillary activities, an increase of more than 30%. At the same time, VNA's revenue from sales reached VND4,138 billion, a decrease of 3%.
Both have large debt burdens.
The debt ratio (total liabilities/total assets) shows how much debt is owed for every dollar of assets. If this ratio is too high, it will raise concerns about financial risk.
At Vietjet Air, liabilities were VND82,593 billion, accounting for 83% of total assets at the end of 2024. At Vietnam Airlines, total liabilities at the end of 2024 decreased by nearly 9% after a year when business recovered and financial costs were less "stressful". However, with more than VND68,109 billion, liabilities still exceeded the airline's total assets (VND58,064 billion).
On the positive side, at the meeting near the end of last year, the National Assembly agreed to pass solutions to continue removing difficulties caused by the impact of the COVID-19 pandemic so that Vietnam Airlines can soon recover and develop sustainably.
In addition, the financial report also explains the income of leaders of two major Vietnamese airlines.
At Vietnam Airlines, the salary and remuneration of the board of directors, supervisory board and executive board will be more than VND 14.25 billion in 2024, an increase of VND 1.35 billion compared to the previous year.
Of which, Mr. Dang Ngoc Hoa, Chairman of HVN, received a salary of more than 1.38 billion VND. Two members of the board of directors , Mr. Ta Manh Hung and Mr. Le Truong Giang, both received 1.11 billion VND.
Other board members such as Mr. Hiroyuki Kometani, Dinh Viet Tung, and Truong Van Phuoc received remuneration of 105 - 222 million VND.
In the executive board, Mr. Le Hong Ha - general director - received a salary of more than 1.38 billion VND. Meanwhile, the deputy general directors received income ranging from 740 million VND to more than 1.11 billion VND.
Notably, at the board of supervisors, Ms. Duong Thi Viet Tham received a fairly high income, more than 1.11 billion VND.
Without giving detailed explanations, Vietjet Air only said that board members received nearly 77.5 million VND per month per person in the fourth quarter of 2024, slightly lower than the same period last year.
Meanwhile, in the executive board, the average monthly salary for a Vietjet Air manager is 126.4 million VND, equivalent to the same period.
Previously, domestic media cited the survey results of aviation website Aviation A2Z revealing that the salary of pilots at Vietnam Airlines tends to fluctuate between 10,000 - 18,000 USD/month (251 - 451 million VND/month), equivalent to 120,000 - 216,000 USD/year (3 - 5.4 billion VND/year). The salary will depend on seniority and work experience.
Meanwhile, Vietjet Air pilot salaries range from 8,000 - 12,000 USD/month (200 - 300 million VND/month) or 96,000 - 144,000 USD/year (2.4 - 3.6 billion VND/year).
Vietnam Airlines, Vietjet Air increase domestic flightsSource: https://tuoitre.vn/do-ket-qua-kinh-doanh-cung-thu-nhap-cua-sep-vietnam-airlines-va-vietjet-air-20250207200857375.htm
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