Vietnam Airlines achieves gross profit of VND 6,703 billion in the first 6 months of 2024

The production and business results of Vietnam Airlines Corporation (Vietnam Airlines, stock code HVN) continued to improve strongly in the first 6 months of 2024 despite difficulties in the aircraft fleet.

Vietnam Airlines is aiming for balance of income and expenditure in 2024.

Vietnam Airlines has just announced its Consolidated Financial Statements and Interim Parent Company Financial Statements for the six-month period ending June 30, 2024. Accordingly, in the first six months of 2024, Vietnam Airlines transported approximately 7.96 million domestic passengers and 3.63 million international passengers, equivalent to 88.84% and 123.05% of the passenger volume in the same period in 2023 (the six-month period ending June 30, 2023 was 8.96 million domestic passengers and 2.95 million international passengers). The above transport results helped Vietnam Airlines achieve a total revenue of VND 53,904 billion (the same period last year was VND 44,275 billion), of which the parent company's revenue reached VND 41,451 billion (the same period last year was VND 33,289 billion); Consolidated profit after tax was VND 5,401.6 billion, of which the parent company's profit after tax was VND 1,262 billion. This is a sudden increase in profit after tax because in the same period last year, the parent company still lost VND 1,178 billion, consolidated profit after tax lost VND 1,386 billion. According to a representative of Vietnam Airlines, the total revenue and other income of the parent company increased by 25.04% over the same period (an increase of more than VND 8,368 billion), mainly due to service revenue increasing by 23.96%, equivalent to an increase of more than VND 7,910 billion over the same period last year (domestic revenue increased by 21.3%, international revenue increased by 24.3%) because the Corporation has restored the entire domestic flight network; most international routes have been exploited and new routes have been opened. The parent company's total expenses increased by 17.1%, equivalent to an increase of VND 5,924 billion over the same period, mainly due to an increase in cost of goods sold (increased correspondingly to increased output) and a sharp increase in financial expenses due to the impact of exchange rates and interest rates. In the first 6 months of 2024, the parent company's gross profit from providing services reached more than VND 5,347 billion; after-tax loss decreased by more than VND 2,442 billion over the same period last year. The consolidated business results in the first 6 months of 2024 increased sharply compared to the loss in the same period last year, mainly due to the parent company and its subsidiaries operating profitably. In the first 6 months of 2024, the Corporation recorded a sharp increase in consolidated other income due to Pacific Airlines' debt being forgiven by its partner under the ship return agreement. In addition, in recent times, due to the recovery of the transportation market and the Corporation's proactive implementation of a series of short-term and long-term solutions such as flexible management of freight supply, maximum cost reduction, negotiation of service price reduction, etc., the Corporation's production and business activities have improved significantly, especially in the first quarter of 2024, which is the peak business period in the aviation industry, the parent company's business results increased sharply compared to the same period last year. However, due to seasonality, April and May are the lowest months of the year for the domestic aviation market, so production and business results are less effective than in the first quarter of 2024. In general, in the first 6 months of 2024 of the Corporation, the consolidated profit after corporate income tax and the parent company's profit reached VND 5,402 billion and VND 1,263 billion, respectively, a sharp increase compared to the loss in the same period last year. Despite a strong improvement in production and business activities, the short-term debt of the Corporation and its subsidiaries exceeded the short-term assets by VND 40,787 billion, the overdue payables of the Corporation and its subsidiaries were VND 13,351 billion and the negative equity (-) was VND 11,633 billion. Regarding this content, Vietnam Airlines said that it had completed the Corporation's restructuring project for the period 2021-2025 and reported to shareholders and competent authorities for consideration and approval. In the project, in 2024-2025, Vietnam Airlines will synchronously implement solutions to overcome the situation of negative consolidated equity such as: synchronously implementing solutions to enhance adaptation and profitable business; restructuring assets and financial investment portfolio to increase income and cash flow. In the first 6 months of 2024, the Corporation and its subsidiaries have been negotiating with commercial banks to obtain additional credit limits for production and business activities. As of June 30, 2024, the total credit limit that the Corporation and its subsidiaries have signed with commercial banks is VND 29,800 billion (January 1, 2024 is VND 25,400 billion). In addition, the Corporation also has a refinancing loan source of VND 4,000 billion from Southeast Asia Commercial Joint Stock Bank, Vietnam Maritime Commercial Joint Stock Bank and Saigon - Hanoi Commercial Joint Stock Bank according to Circular No. 04/2021/TT-NHNN dated April 5, 2021. During the period, banks agreed to continue to provide credit limits for short-term loans that the Corporation and its subsidiaries have paid on time and met the conditions and regulations of the State Bank, thereby continuing to maintain current credit limits in the following year as well as ensuring payment of principal loans due. For long-term loans and financial leasing debts, the Corporation has also successfully negotiated with a number of creditors to restructure the payment schedule of long-term loans and financial leasing debts due. The Corporation and its subsidiaries have been and are continuing to negotiate price reductions and payment schedule deferrals with partners, in which many partners have agreed to reduce prices (for aircraft leasing and maintenance costs...) or extend or postpone payment schedules (for aircraft leasing, flight management, flight services...). On the one hand, the Corporation and its subsidiaries are actively seeking financial resources to pay overdue debts to suppliers in the amount of VND 13,351 billion as of June 30, 2024. On the other hand, the Corporation and its subsidiaries are also continuing to negotiate and call for support from partners in reducing and postponing payment deadlines for overdue debts. Source: https://baodautu.vn/vietnam-airlines-dat-loi-nhuan-gop-6703-ty-dong-trong-6-thang-dau-nam-2024-d223959.html