Int’l passengers spur airline business performance

The consolidated pre-tax profit of the national flag carrier Viet Nam Airlines topped VND5.67 trillion (nearly US$226 million). Meanwhile, Vietjet reported VND1.31 trillion in pre-tax profit, surging by 433 percent year-on-year, exceeding the annual plan by 21 percent.

These are positive results in the context of high fuel prices, unfavorable exchange rate fluctuations, low seasonal demand in the second quarter, and a shortage of aircraft due to global engine recalls by Pratt & Whitney.

Airlines have effectively leveraged the growth of the international passengers to promote recovery.

Viet Nam Airlines reported consolidated revenue reached over VND53.12 trillion in the reviewed period, up 20 percent year-on-year.

Meanwhile, Vietjet’s cumulative revenue and pre-tax profit from aviation transport totaled nearly VND32.9 trillion and over VND1.17 trillion, representing surges of 31 percent and 690 percent year-on-year, respectively. Its cumulative business revenue topped VND34 trillion and pre-tax profit VND1.31 trillion, up 15 percent and 433 percent year on year, respectively.

According to Saigon Ratings, an independent credit rating organization, Vietjet has maintained a long-term credit rating of vnBBB- with a "stable outlook”.

The airlines have also added new international routes in the period, ready to meet transportation demand and plans to further expand their international networks in the future, towards promoting the country’s socio-economic development.

By showcasing Viet Nam to the world through aviation and tourism promotion activities, airlines have made positive contributions to improving the image and position of the country and its people on the international stage, said the Civil Aviation Authority of Viet Nam (CAAV).

Earlier, Viet Nam welcomed 8.832 million foreign tourists in the first six months of 2024, up by 58.4 percent year-on-year, according to the H1 report from the General Statistics Office. The figure represents a slight increase of 4.1 percent compared to the same period in 2019, before the disruptions caused by the COVID-19 pandemic.

Favorable visa policies, and strong efforts in tourism promotion campaigns by localities across the country have contributed to attract a rather high number of international guests compared to last year's number./.