Vietnam Airlines posted an impressive performance third quarter 2024 thanks to the restoration of its domestic and international network. The company recorded consolidated sales of over VND85,466 trillion, up 24.64% on the previous year. The post-tax profit totaled VND 862 billion in the third quarter. Vietnam Airlines recorded 106,400 flights and carried 17.2 million passengers. To overcome the challenges of COVID-19, the company is focusing on flexible management, cost optimization and international market expansion.
In the aeronautical world, 2024 marked a turning point for Vietnam Airlines. Vietnam's national airline turned in an outstanding performance in the third quarter, distinguishing itself by its dynamism and ability to adapt to the many challenges facing the sector. After re-establishing its entire domestic network and a large part of its international network, Vietnam Airlines enhanced its offer with new routes and intensified operations during the summer peak.
Vietnam Airlines' challenges and adaptations
Despite signs of recovery in the airline market, Vietnam Airlines is still facing difficulties, particularly in connection with COVID-19 restrictions. The end of 2023 resulted in negative equity of around VND17,026 billion. Various factors, such as political uncertainty, exchange rate fluctuations, rising fuel costs and engine recalls, continue to weigh on the sector.
Management strategies and outlook
In response to these challenges, Vietnam Airlines has implemented several measures, including flexible capacity management, cost optimization and discount negotiation. The company is also capitalizing on the growth momentum of international travel to facilitate rapid recovery and future expansion. A comprehensive plan has been developed to overcome the impact of the pandemic and ensure a sustainable recovery from 2021 to 2035. This plan, submitted to the relevant authorities, aims to redress the negative equity situation between 2024-2025 through asset restructuring and financial investments to improve revenues and cash flow.
Commitment to sustainable development
In addition to improving its commercial performance, Vietnam Airlines works closely with government ministries and embassies to organize events promoting investment and tourism, thus highlighting Vietnam as a popular destination. The company has also initiated a series of projects for a sustainable developmentThese include projects such as the response to and recovery from natural disasters, and the "Contribute from the Leaves to the Forests - For a Green and Sustainable Vietnam" initiative. These projects also include efforts to promote gender equality in partnership with UN Women.
In anticipation of air travel demand for the fourth quarter of 2024 and early 2025, Vietnam Airlines is striving to improve its overall efficiency during low and peak seasons, including the Christmas and New Year period. Projects to acquire and reconfigure aircraft, such as the Airbus A321 CEO, are also underway, in response to growing market demands.
Find out more about the performance and strategies of other airlines around the world, including those of Air Canada and maintaining Heathrow's status as Europe's busiest airport in 2024.
Road network development
In line with its expansion strategy, Vietnam Airlines has inaugurated several new international routes linking Hanoi and Ho Chi Minh City to Munich in Germany, Manila in the Philippines, and Phnom Penh in Cambodia. Domestic routes have also been launched between Da Nang and Da Lat, Buon Ma Thuot and Can Tho. In addition, the company deploys wide-body aircraft on routes linking Vietnam with India, Singapore and China.
Vietnam Airlines' financial and operational performance in Q3 2024
| Aspect | Results |
| Consolidated income | 26,600 billion VND |
| Profit after tax | 862 billion VND |
| Growth in Service Income | 17,34% |
| Number of Flights Operated | 106,400 flights |
| Passengers carried | 17.2 million |
| Increase in Freight | 42% |
| Domestic and International Network | Restored with new routes |
| Aviation ranking | 11th among the top 25 |
| Challenges encountered | Negative equity and COVID constraints |
| Reaction strategy | Flexible management and cost optimization |
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