Vietnam Airlines and its subsidiaries earned combined revenue last year of more than VND76 trillion ($3.34 billion), an increase of more than 10 per cent against 2015.

Pre-tax profit stood at almost VND2.5 trillion ($110 million), up 140 per cent and 7 per cent higher than the annual plan.

A source from the corporation said the airline alone earned nearly VND59.1 trillion in revenue and VND1.6 trillion ($70.4 million) in pre-tax profit. The company also contributed approximately VND4.9 trillion ($215.6 million) to the State budget, an increase of about 11 per cent compared to 2015.

The national flag carrier put ten Boeing 787-9 Dreamliners and six Airbus A350-900 XWBs into operation last year. It carried 20.6 million passengers and 264,000 tonnes of cargo on more than 133,000 flights, both domestic and international.

The carrier was also certified as a four-star airline by the UK-based airline and airport rating organization SkyTrax, which also ranked it third on its list of most improved airlines in the world during 2016.

Vietnam Airlines completed its equitization and moved on to the Unlisted Public Company Market (UPCoM) on January 3, putting its market capitalization at $1.5 billion.

It also agreed to terms with a Japanese strategic partner, ANA Holdings Inc., which acquired an 8.77 per cent stake.

An official from the carrier said that growth in the aviation sector and feasible management policies were key to its success last year, and better market distribution among its separate carriers - Vietnam 

Airlines, Jetstar Pacific and VASCO - established a flight network that better meets passenger demand. 

Vietnam Airlines focuses on four-star services on major domestic and international flights, while low-cost Jetstar Pacific prioritizes domestic routes with competitive prices as well as short-haul international routes. VASCO, meanwhile, serves provincial airports that are yet to accommodate large aircraft.   

A recent report from the Center for Asian-Pacific Aviation (CAPA) showed that Vietnam Airlines held a market share of 45 per cent on the Hanoi - Ho Chi Minh City route and 60 per cent of the entire aviation market in Vietnam.

A senior official from Vietnam Airlines said that safe flights and four-star services that fulfill more than 90 per cent of SkyTrax’s requirements, as well as stronger partnerships with Jetstar Pacific, Cambodia Angkor Air and VASCO, continue to be priorities this year.

VN Economic Times