Vietnam Airlines Group eyes record revenues

By Anh Tu June 22, 2024 | 08:00 pm PT

A Vietnam Airlines aircraft seen at Noi Bai International Airport in Hanoi. Photo by VnExpress/Luu Quy

Vietnam Airlines Group, which operates three airlines, targets record revenues of VND80.89 trillion (US$3.18 billion) this year but expects the profit rate to be less than 1%.

Its first quarter revenues rose by 25% to VND28.27 trillion.

Amid high demand, the company expects to see international and domestic passenger numbers rise by 20% and 13%.

High fuel costs are expected to be a drag on profits. The company said in a disclosure to shareholders that if fuel prices increase by $1 per barrel, its costs rise by VND230 billion a year.

The economic slowdown is causing international travel to recovery at no great pace while geopolitical tensions show no signs of abating, it said. Its top market, China, is seeing extremely slow recovery, it added.

Many of its debts start falling due in July, posing a financial burden.

Vietnam Airlines Group, the parent of Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company, plans to sell its stakes in Tan Son Nhat Cargo Service Company this year for VND1.7 trillion.