According to documents prepared for the annual general meeting of shareholders today (June 21), Vietnam Airlines Corporation ( Vietnam Airlines ) said that in 2023, the aviation industry will continue to face many obstacles from geopolitical conflicts that disrupt supply chains, fuel prices remaining high at over 105 USD/barrel, and unfavorable fluctuations in interest rates and exchange rates.

Overcoming difficulties, Vietnam Airlines Group last year transported more than 24.1 million passengers and 230,000 tons of cargo, up 16.4% and 5.8% respectively compared to the same period last year.

The airline's consolidated revenue in 2023 reached VND93,265 billion, nearly 30% higher than the same period in 2022 and approaching the peak in 2019. The consolidated loss before tax decreased by VND5,583 billion, half that of 2022.

HVN shares started to increase rapidly from the end of March and are currently at a 5-year peak (opening price on June 21 was 35,450 VND).

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Consolidated revenue reached over 93 trillion VND, HVN shares continuously hit the ceiling. Photo: Nam Khanh

At the congress, Mr. Nguyen Ngoc Canh, Vice Chairman of the State Capital Management Committee at Enterprises, acknowledged Vietnam Airlines' results over the past year. Despite facing many challenges from the global economic and political situation, the airline has proactively implemented many solutions to recover, develop and achieve encouraging results.

Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, said: In 2024, the aviation business environment will still face many challenges from the global geopolitical and economic situation.

Based on the forecast, Vietnam Airlines has developed key goals, directions, and tasks. In particular, the airline focuses on implementing the restructuring project, with comprehensive solutions for restructuring assets, capital sources, investment portfolio, organizational structure, and corporate governance innovation. The main goal is still to reduce remaining losses and achieve a balance between revenue and expenditure in 2024, Mr. Hoa informed.

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Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines. Photo: N. Huyen

To achieve this goal, the airline will expand its international flight network with new routes to Western Europe and Southeast Asia in 2024. For the domestic market, the airline will adjust flight frequencies to suit market demand, maintain its main market share on key routes and increase capacity on tourist routes.

At the same time, the airline also focuses on preparing to invest in narrow-body aircraft projects and A321ceo aircraft configuration conversion projects to improve operational efficiency, meet market demand and develop on the basis of being consistent with the fleet restructuring orientation.

In addition, the company continues to restructure to overcome the consequences of the Covid-19 pandemic and create a foundation for sustainable development. 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, while promoting organizational restructuring, reducing intermediary levels, investing in technology and digital transformation to improve labor productivity and resource quality.

In 2024, Vietnam Airlines parent company sets a revenue target of VND 80,894 billion, consolidated revenue of VND 105,946 billion. The expected profit is VND 105 billion because this year is forecast to still face many difficulties,