Vietravel Airlines reports first profits in 3 years

By Anh Tu   April 13, 2024 | 06:31 pm PT
Vietravel Airlines reports first profits in 3 years
One of three A321 aircraft of Vietravel Airlines. Photo courtesy of VU
Vietravel Airlines has reported a profit of VND10 billion (US$400,128) for the first three months of the year, achieving its first profitable quarter since its inception in 2021.

As a subsidiary of the tour operator Vietravel, the airline announced first-quarter revenues exceeding VND491 billion, surpassing its initial target by 42%.

The profits stemmed from increases in domestic airfare prices, which typically reach their peak during the two or three weeks around the Tet (Lunar New Year) holiday. This year, the holiday period was from February 7 to 14.

Typically, airfare prices start to decrease gradually after Tet. However, this year, prices have not followed the expected post-holiday downturn and have remained elevated.

Factors contributing to sustained high prices include rising operational costs and a shortage of aircraft, particularly as numerous airlines have been forced to ground A321 planes, commonly used for domestic flights, for engine maintenance.

With a modest fleet of just three A321 aircraft, Vietravel Airlines is nevertheless setting ambitious goals, targeting VND1.05 trillion in revenues for the next quarter. The airline is expanding its network with new routes and increasing the frequency of flights both within Vietnam and internationally.

Currently, Vietravel Airlines operates charter flights to Japan, connecting Ho Chi Minh City with Takamatsu and Da Nang with Fukushima, among others.

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