Vietnam Airlines aims for breakeven in 2024

Vietnam Airlines hopes to balance its revenue and expenditure in 2024 but faces a range of tough challenges. Speaking at the company’s annual meeting in Hanoi, chairman Dang Ngoc Hoa says the present environment is characterised by high fuel prices and high US dollar interest rates, which affect exchange rates and the carrier’s cost base. “In 2024, the aviation sector continues to face challenges such as macro-economic uncertainties,” says Dang. “Based on business environment forecasts, Vietnam Airlines has set key objectives, directions, and tasks. The company will focus on restructuring assets, capital, investment portfolio, organisational structure and corporate governance reforms. The primary goal is to reduce losses and balance revenue and expenditure in 2024.” Specific issues include overcapacity at airports and an inpsection and repair programme for Pratt & Whitney PW1100G engines, which has affected the the carrier’s operations. In 2023, the carrier saw consolidated revenue climb 30% to VND93t ($3.6b), as the carrier transported over 24.1m passengers, up 16.4% from a year earlier. Nonetheless, the carrier suffered a consolidated loss during the year of VND5.8t. To help it through 2023, the carrier introduced a comprehensive cost-management programme that reduced costs by about VND3.2t. Despite the challenges, Vietnam Airlines observes that the country continues to enjoy strong economic growth. The carrier aims to add new routes to Europe and Southeast Asia and adjust frequencies domestically to better meet demand.<br/>