Vietnam Airlines' 2024 Annual General Meeting of Shareholders took place on the morning of June 21 - Photo: VNA
That goal was approved by Vietnam Airlines shareholders at the company's 2024 annual general meeting on the morning of June 21.
Speaking at the shareholders' meeting, Mr. Le Hong Ha - General Director of Vietnam Airlines - said that in 2024, the world economic and political situation will continue to be difficult, affecting airlines.
Specifically, the conflicts between Russia - Ukraine and Israel - Hamas have broken the supply chain, greatly affecting global production and economic activities.
Fuel prices remain high at around $104/barrel, causing operating costs to increase. In fact, a $1/barrel change in fuel prices causes the company’s operating costs to change by around VND230 billion/year.
Meanwhile, engine manufacturer Pratt & Whitney recalled engines on A321 and A320 Neo aircraft, causing a shortage of aircraft until 2025, directly affecting plans to operate, restore and expand the flight network.
The above factors create great pressure on the production and business activities of airlines in general and Vietnam Airlines in particular.
Considering the above factors, Vietnam Airlines sets a production and business plan for 2024 with the expected goal of transporting 22.64 million passengers, an increase of 7.6% over the same period and equal to 99% compared to 2019.
The company's consolidated revenue target in 2024 is VND 105,946 billion (up 113.6%), consolidated pre-tax profit is VND 4,524 billion, and parent company profit is VND 105 billion.
Regarding financial planning, Vietnam Airlines synchronously implements solutions to increase revenue and income, continues to drastically implement cost management and optimization, and improves the efficiency of resource use, especially the aircraft fleet.
In particular, Vietnam Airlines plans to divest capital from Tan Son Nhat Cargo Services Joint Stock Company (about VND 1,700 billion) to supplement income and cash flow. As a result, the parent company's and consolidated business results in 2024 are expected to achieve the target of balancing revenue and expenditure; in which the parent company's pre-tax profit will reach VND 105 billion and the consolidated profit will be VND 4,524 billion.
With an expected profit of about VND 105 billion in 2024, Vietnam Airlines' equity target at the end of 2024 has slightly improved, with the pre-tax profit margin/total revenue reaching a positive level of 0.13%.
If the above production and business results are achieved, Vietnam Airlines is expected to maintain a balanced cash flow during the year, with a surplus of about VND 517 billion at the end of the period, and its short-term solvency will be slightly improved.
However, due to the negative impact of the years with the COVID-19 pandemic, in general, Vietnam Airlines' financial situation at the end of 2024 is still in a state of serious imbalance with the parent company's equity expected to be negative at about VND 8,237 billion and consolidated equity negative at about VND 17,948 billion.
Along with the goal of balancing revenue and expenditure by 2024, Vietnam Airlines continues to implement restructuring to overcome the consequences of the COVID-19 pandemic to overcome negative equity and eliminate accumulated losses in the following years. Restructuring solutions focus on completing divestment in a number of member companies and submitting to competent authorities a plan to extend the repayment of refinancing loans. At the same time, the airline promotes organizational restructuring, technology investment and digital transformation to improve labor productivity and resource quality.
In 2023, Vietnam Airlines will reach VND93,265 billion in consolidated revenue, nearly 30% higher than in 2022 and approaching the peak in 2019. The consolidated loss before tax will be VND5,583 billion, half that of 2022.
In the first quarter of 2024, Vietnam Airlines achieved a profit after tax of VND 4,441 billion (in the first quarter of 2023, it was negative VND 37.3 billion), of which the profit after tax of the parent company Vietnam Airlines was VND 1,499 billion.
Source: https://tuoitre.vn/vietnam-airlines-dat-muc-tieu-co-loi-nhuan-trong-nam-2024-20240621120437794.htm
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