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Vietnam Airlines Records Pre-Tax Profit and Expands Its Route Map

A Vietnam Airlines Boeing 787 Dreamliner on approach into London’s Heathrow Airport. (Photo: AirlineGeeks | William Derrickson)

After three years of the pandemic, Vietnam Airlines has reported the first pre-tax profit of VDN 19.3 billion ($822,500) in the first quarter of 2023. As a result of the strong travel demand, the revenue in the first quarter was doubled year on year and close to the pre-pandemic levels to VDN 23.64 trillion, the highest quarter revenue since 2020. However, the carrier has recorded a post-tax loss of VDN 37.3 billion.

The airline served 5.1 million passengers in the first quarter of the year, increasing 63% year on year. It attributed to the Lunar New Year holidays in January, the airline needed to boost its capacity to meet the pent-up demand. Meanwhile, the international travel demand to U.S., Europe, Australia and domestic travel demand were also on the rise.

In addition, China has lifted its travel restrictions in January. Chinese government has gone further in allowing the travel agency to operate the sightseeing tours to Vietnam in mid-March. Vietnam has rolled out the red carpet for the first Chinese sightseeing tour in April. The Vietnamese carriers and the travel sectors are expected to be benefited from the sightseeing tours.

However, Pacific Airlines and Vietnam Air Services Company, the carriers’ subsidiaries were left behind, recording 40% lower than pre-pandemic levels. Earlier, The Civil Aviation Authority of Vietnam has revealed that it is confident of recovering, expecting a full recovery from the pandemic by the end of the year.

Route Map Expansion

In the second year of the post-pandemic, Vietnam Airlines continues to spread its wings, launching Hanoi – Melbourne, Australia on Jun. 15.  The airline will use A350-900 with three classes on the new route. The airline will operate 18 flights per week connecting two countries, providing the highest frequency in the country. Before the pandemic, almost 50% passengers flying with Vietnam Airlines to Australia.

India has been on Vietnam Airlines’ radar since last year, as the flights to New Delhi were launched in June. After one year of starting the flights, the airline will increase the service to India by adding Hanoi, Vietnam – Mumbai and Ho Chi Minh City – Mumbai starting on May. 20. Airbus A321s will be used on the routes.

In addition, the airline announced that its London service will resume to a daily service on Oct.29. Before the operation of daily service, the airline will gradually ramp up its frequencies to five-times-a-week starting from Jul. 1. Vietnam Airlines is in line with its rival, Bamboo Airways, to operate Boeing 787-9 Dreamliner in three classes.

“With the resumption of daily services from London confirmed once again for this winter, we are determined to return to pre-pandemic passenger numbers – which peaked at approximately 74,000 from London Heathrow in 2019 – as soon as possible,” Phan The Thang, the airline’s general manager for the U.K. and Ireland, said.

Pete Ainsley

Author

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