Vietnam Airlines posts profit in Q1
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Vietnam Airlines posted a pre-tax profit of VND19.3 billion ($822,500) in the first quarter after losses in 12 consecutive quarters. The airline saw revenue doubling year-on-year to VND23.64 trillion, the highest quarter record since Q1 2020.
It is near the pre-pandemic levels of 2019. The state-owned carrier however still posted a post-tax loss of VND37.3 billion.
The pre-tax profit, however, is still considered a strong signal of recovery after the carrier plunged into major financial difficulties due to Covid-19.
The airline said that in the first quarter of this year, the domestic market recovered, and China lifted its Covid-19 restrictions, which resulted in a surge in passenger numbers.
There was also high occupancy on flights to the United States., Europe and Australia, it added.
The company served 5.1 million passengers in the first quarter, up 63% year-on-year. A weaker U.S. dollar and lower-than-expected fuel prices also helped reduce costs.
But Vietnam Airlines, which operates Pacific Airlines and Vietnam Air Services Company, still sees high risks in the future as the domestic market remains 40% lower than pre-pandemic.
It added that global geopolitical tensions will likely still affect the aviation industry in 2024.
Questions & Answers
Q.What is the reason for the difference between Vietnam Airlines' pre-tax profit and post-tax loss?
What is the reason for the difference between Vietnam Airlines' pre-tax profit and post-tax loss?
The article states the airline posted a pre-tax profit of VND19.3 billion. However, it still recorded a post-tax loss of VND37.3 billion. The article does not specify why this difference exists.
Q.What factors contributed to Vietnam Airlines' revenue doubling and achieving a profit in Q1?
What factors contributed to Vietnam Airlines' revenue doubling and achieving a profit in Q1?
A recovering domestic market, China lifting Covid-19 restrictions, and high occupancy on international flights contributed to the revenue increase. Also, a weaker U.S. Dollar and lower fuel prices helped reduce costs.
Q.Does the airline anticipate continued growth and profitability in the coming year?
Does the airline anticipate continued growth and profitability in the coming year?
Despite the Q1 profit, the airline sees high risks ahead. The domestic market remains 40% below pre-pandemic levels, and global geopolitical tensions are expected to affect the aviation industry in 2024.
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