AsemconnectVietnam - Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines Corporation (Vietnam Airlines, stock code: HVN) affirmed so at the 2024 Annual General Meeting of Shareholders on the morning of June 21.

In 2023, Vietnam Airlines Group transported more than 24.1 million passengers and 230,000 tons of goods, an increase of 16.4% and 5.8% respectively compared to the same period. Positive exploitation results helped Vietnam Airlines reach VND93,265 billion in consolidated revenue, nearly 30% higher than the same period in 2022 and close to the peak in 2019. Consolidated loss before tax decreased by VND5,583 billion, halving compared to with 2022. In the first quarter of 2024, Vietnam Airlines had a profit of more than VND4,000 billion.
To achieve the above results, Vietnam Airlines has proactively implemented synchronous solutions on its own, closely following market developments. The airline has restored its international flight network equivalent to 90% of 2019, opening new routes such as Hanoi/HCMC - Mumbai, Hanoi - Melbourne, Ho Chi Minh City - Perth. The domestic flight network continues to operate with the number of routes restored equivalent to 2019. The airline has well implemented commercial, advertising and communication activities, helping to increase revenue and enhance the image and brand of Vietnam Airlines.
Besides, Vietnam Airlines focuses on cost management and thorough savings. In addition to reducing costs according to output scale, the Corporation has implemented cost savings, negotiated price reductions, postponed payments... helping to cut costs with an estimated amount of more than VND3,200 billion. At the same time, Vietnam Airlines proactively restructures debt and flexibly uses short-term loans.
In 2024, the world economy and politics will still be difficult with prolonged geopolitical conflicts and fuel prices remaining at a high level of 104 USD/barrel. USD interest rates remain high, affecting foreign exchange rates and input costs. It is forecast that global tourist output will fully recover compared to 2019, but Asia - Pacific needs more time, especially Northeast Asia. Macro risks and airport infrastructure overload still exist. The problem of engine manufacturer Pratt & Whitney recalling engines globally causes a shortage of aircraft, affecting operations.
Domestically, the macroeconomic picture has many positive points such as Vietnam's economy is expected to grow steadily; the domestic aviation market is expected to grow by 6%-8%. This is the basis for Vietnam Airlines to continue to set a big goal of reducing the remaining losses and aiming to balance revenue and expenditure.
To achieve this goal, Mr. Dang Ngoc Hoa said, Vietnam Airlines deploys synchronous solutions in all aspects of production and business. For the international market, the airline will expand its international flight network with new routes to Western Europe and Southeast Asia in 2024. For the domestic market, the airline will adjust flight frequency to suit market demand, maintaining main market share on key routes and increasing capacity on tourist routes. The Corporation proactively develops operating plans according to planned scenarios, improving product and price management capacity.
For the aircraft fleet, Vietnam Airlines focuses on preparing to invest in narrow-body aircraft projects and the project to convert the configuration of A321ceo aircraft to improve operational efficiency, meet market needs and develop with the orientation of aircraft fleet restructuring. The Corporation will also complete investment preparations for the synchronous service complex at Long Thanh International Airport to move to the investment implementation phase.
The airline continues to implement restructuring to overcome the consequences of the Covid-19 pandemic and create a foundation for sustainable development. Restructuring solutions focus on completing divestment at a number of member companies and submitting to competent authorities a plan to extend debt repayment of refinanced loans, while promoting organizational restructuring, reducing intermediate level, investing in technology and digital transformation to improve labor productivity and quality of resources.
Mr. Dang Ngoc Hoa said: "The company pays special attention to implementing the restructuring project, with comprehensive solutions on restructuring assets, capital sources, investment portfolio, organizational structure and management innovation." corporate governance. The big goal is to reduce losses and balance revenue and expenditure in 2024."
Vietnam Airlines leaders also said that the shortage of aircraft still persists. One is because from September 2023, engine manufacturer Pratt & Whitney announced the recall of the PW 1100 engine for in-depth inspection and repair to fix manufacturing errors. In Vietnam, these engines are being used on 42 Airbus A321 NEO aircraft operated by Vietnam Airlines and VietJet Air. This causes 50% of Airbus A321 NEO aircraft to stop operating from January 2024. Second, airlines are currently lining up to buy new aircraft ordered from the world's two largest manufacturers, Boeing and Airbus. "If you order now, the ship will not be delivered until 2030," said a Vietnam Airlines leader.
N.Nga
Source: VITIC/Tinnhanhchungkhoan