Vietnam Airlines posts solid profit ahead of listing

Vietnam Airlines Group has announced a full-year profit before tax of VND2.8 trillion ($US121m) and record revenue of 102 trillion ahead of plans to list the company. The consolidated revenue of VND102 billion ($US4.4billion) was ahead of last year’s figures and passed the VND 100 trillion mark for the first time. The airline said the pre-tax profit, which was stable compared to the 2017 result, was 15 percent higher than its expectations. The revenue included contributions from Vietnam Air Services Company and Qantas joint venture Jetstar Pacific. Vietnam Airlines carried 22 million passengers on 142,000 flights as well as 350,000 tonnes of cargo in 2018. The airline attributed its performance to robust demand for air travel, optimized operational efficiency and better cost control. It said it had made significant progress in modernizing its fleet and investing in technology. READ our ratings for Vietnam Airlines. This included the addition of two wide-bodies Airbus A350 and three narrow-bodies A321Neos. “Vietnam Airlines’ strong earnings performance capped another year of extraordinary achievement, including surpassing the VND 2 trillion mark in profit,’’ chief executive Duong Tri Tranh said. “We made significant progress on several key initiatives in 2018 including improved human resources management, enhanced product portfolio and on-time-performance index. 2018’s success offered an unparalleled opportunity Vietnam Airlines to unlock further growth and bolster the service quality.” Vietnam Airlines plans to list on the Ho Chi Minh Stock Exchange this year and its results announcement confirmed it would complete the remaining procedures relating to privatization. It also plans to complete a fleet development plan and continue with digital and IT advances. Vietnam Airlines is the flag carrier of Vietnam and operates 94 routes to 21 domestic and 29 international destinations with an average of 400 flights per day. It connects major global cities to travel destinations in Vietnam, Laos, Cambodia and Myanmar.