Vietnam Airlines has achieved remarkable growth in 2024, successfully restoring its complete domestic network and most international routes.
The airline’s expansion includes new destinations and increased summer operations, demonstrating robust recovery in the aviation sector.
Strong Growth in 2024 to Date
The airline reported consolidated revenue exceeding 85.466 trillion VND in the first nine months of 2024, showing impressive growth of 24.64% year-over-year. The consolidated post-tax profit reached 6.263 trillion VND, with Q3 alone contributing 862 billion VND.
This success stems from improved operational efficiency and strong subsidiary performance. Q3 performance showed significant improvement, with the parent company’s total revenue jumping 19.12% compared to 2023. Service revenue grew by 17.34%, adding 3,055.7 billion VND more than the previous year.
Operational metrics between January and September 2024 showcased substantial growth. Vietnam Airlines operating 106,400 flights and transporting 17.2 million passengers, representing an 8.9% increase from 2023.
Cargo operations have been particularly successful, with the airline handling 226,000 tons of cargo. This is a remarkable 42% year-over-year growth.
Network Expansion Amid Challenges
The airline has significantly expanded its network, launching new international routes connecting Hanoi and Ho Chi Minh City to Munich, Manila, and Phnom Penh. Domestically, new routes now link Da Nang to Da Lat, Buon Ma Thuot, and Can Tho, strengthening the airline’s regional presence.
However, Vietnam Airlines continues to face significant challenges. The airline reported negative equity of 17.026 trillion VND at the end of 2023. Like many others, it grappled with rising fuel costs, engine recall issues, increased maintenance expenses, and exchange rate fluctuations.
In response, the airline has implemented strategic measures including flexible capacity management, cost optimization strategies, and discount negotiations. At the same time, the airline capitalized on international travel growth opportunities.
Future Outlook
Looking forward, Vietnam Airlines is executing a comprehensive recovery plan spanning 2021-2035. This strategy aims to address negative equity by 2024-2025 through asset restructuring and investment optimization. The carrier will seek to enhance revenue streams and improve overall operational efficiency. The airline is actively preparing for increased demand in Q4 2024 and early 2025.
Sustainability remains a key focus, with Vietnam Airlines maintaining several important initiatives. These include natural disaster response programs, the “Flying Light to Con Dao” initiative, forest conservation efforts, and gender equality promotion in partnership with UN Women.
As Vietnam’s flag carrier and a leading Southeast Asian airline, Vietnam Airlines operates an extensive network of 100 routes, serving 21 domestic and 30 international destinations.
The airline continues to lead Vietnam’s rapidly growing aviation market, pursuing its ambition to achieve 5-star airline status while maintaining its position as a key player in regional aviation.
Summary
The airline’s strong performance in 2024, despite ongoing challenges, demonstrates its resilience and strategic adaptability. The year to date has seen a continued focus on network expansion, operational efficiency, and sustainable practices.
This comprehensive approach to recovery and growth suggests Vietnam Airlines is effectively navigating the post-pandemic aviation landscape while building foundations for long-term success.
Overall, Vietnam Airlines appears well-positioned to maintain its growth trajectory and strengthen its market position in Southeast Asian aviation.
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