Vietnam Airlines sets 2019 revenue target of $4.86 billion

The annual general shareholders' meeting of Vietnam Airlines

Speaking at the meeting, Nguyen Thi Phu Ha, vice chairwoman of the Committee for State Capital Management (CMSC), said: “Vietnam Airlines (VNA), as the national airline, has made great efforts to fulfil its plan, contributing to the overall development of the domestic aviation industry. During the four years of operations as a joint stock company, VNA’s production and business results were always higher than in the previous year. In 2018, VNA has also achieved its targets.”

Pham Ngoc Minh, VNA chairman, said: “Although the aviation market continues to have many challenges, 2019 is an opportunity for VNA to confirm its position in the aviation market and in the business community. We will focus on implementing the tasks assigned by the AGM, ensuring safe operations, continuing the programme of reforming our aircraft fleet, and improving business administration towards sustainable growth. ”

Pham Ngoc Minh, chairman of VNA

VNA shareholders discussed and voted to approve important issues such as the company's report on the business results in 2018 and main targets of production and business plan in 2019, audited financial report for 2018 and plans to distribute profit and dividend, plan to strengthen the Board of Control as well as developing the fleet in 2021-2025, the investment policy to buy 50 narrow-body aircraft in the period 2021-2025, and some other important contents.

Duong Tri Thanh, general director of VNA

The shareholders appreciated VNA’s many achievements in 2018. Consolidated revenue was at a record, reaching VND98.95 trillion ($4.3 billion), up 1.9 per cent compared to the plan. The aviation company also achieved the largest consolidated pre-tax profit so far with VND3.3 trillion ($143.5 million), exceeding the plan by 36.8 per cent. In particular, the parent company contributed VND73.227 trillion ($3.18 billion) in revenue and VND2.418 trillion ($105.13 million) in pre-tax profit, exceeding the target set by the 2018 AGM by 23.4 per cent. The debt to equity ratio has reached 2.58, lower than at the beginning of 2018 and the set target.

In 2018, VNA successfully performed over 141,300 flights, safely transporting nearly 22 million passengers, maintaining four-star international service standards and its on-time performance (OTP), with improving labour productivity, income, and welfare for workers.

With good business and production indexes, VNA has been rising on the UPCoM and is appreciated for its high liquidity and large market capitalisation at approximately $2.6 billion.

Since May 7, 2019, VNA has completed procedures to officially list HVN shares on HSX. The listing on HSX created favourable conditions for the corporation to improve its reputation, transparency of information, increase the liquidity of stocks, and access many sources of new capital.

Previously, VNA also completed the plan to offer shares to shareholders to increase its charter capital. As a result, the company’s capital value increased by VND1.9 trillion ($82.6 million), bringing its charter capital to VND14.18 trillion ($616.5 million).

VNA’s efforts to improve and enhance its brand continue to be recognised by the domestic and international community through a series of prestigious awards. This is the third consecutive year that Skytrax, the international air transport rating organisation, recognises VNA as a four-star international airline. With the brand value of $416 million, according to Brand Finance, VNA also advanced one rank among the Top 10 strongest and most valuable brands in Vietnam in 2018.

With such impressive business results, VNA will pay 10 per cent dividends for 2018 in cash (equivalent to over VND1.418 trillion – $61.7 million), 2 per cent higher than in 2017. This ratio is consistent with the business results of 2018 and the regulations of the state, ensuring the balance of cash flows and financial balance for the expanded investment, production, and business activities of the corporation in 2019 and the following years.

Regarding the 2019 business and production plan approved by the AGM, VNA strives to reach the target of 24.9 million total passenger transport volume. The consolidated revenue target is more than VND111.7 trillion ($4.86 billion), in which the parent company reached over VND82.5 trillion ($3.59 billion). The consolidated pre-tax profit target is nearly VND3.4 trillion ($147.83 million), of which the parent company expects to reach nearly VND2.7 trillion ($117.4 million).

In the first quarter of 2019, VNA’s business activities continued to be positive, with total consolidated revenue of nearly VND26 trillion ($1.13 billion), consolidated pre-tax profit of VND1.58 trillion ($68.7 million), reaching 45 per cent of the whole year plan. The parent company reached VND19.3 trillion ($840.52 million) in revenue, up 5.5 per cent over the same period and VND1.28 billion ($55.61 million) in pre-tax profit, up 36.6 per cent over the same period.