Vietnam Airlines (HoSE: HVN) successfully held its 2024 Annual General Shareholders’ Meeting, attended by representatives from the Commission for the Management of State Capital at Enterprises (CMSC) and existing shareholders. The meeting saw the approval of crucial agendas including the 2024 business plan, audited 2023 financial statements, the 2023 Board of Directors’ activity report, and the 2024 orientation plan.
Despite the numerous challenges faced by the aviation industry in 2023, including geopolitical conflicts, supply chain disruptions, a global economic downturn, high fuel prices, and unfavorable interest and exchange rates, Vietnam Airlines achieved remarkable results. The airline transported over 24.1 million passengers and 230,000 tons of cargo, representing a 16.4% and 5.8% increase year-on-year, respectively. This strong performance led to a consolidated revenue of VND 93,265 billion, nearly 30% higher than in 2022 and approaching 2019 peak levels. Pre-tax consolidated losses were halved compared to 2022, decreasing by VND 5,583 billion.
Vietnam Airlines’ commitment to service excellence was evident in the positive customer feedback and prestigious international awards received, including “Global 5-Star Airline” by the Airline Passenger Experience Association (APEX), Top 20 Safest Airlines by AirlineRatings, and World Travel Awards in four categories. The airline’s comprehensive solutions aligned with market developments played a key role in achieving these successes. These included restoring its international route network to 90% of 2019 levels, adding new routes, maintaining domestic routes at pre-2019 levels, effective commercial and advertising activities, and rigorous cost management.
For 2024, Vietnam Airlines acknowledges the ongoing challenges of macro-economic uncertainties, prolonged geopolitical conflicts, high fuel prices, and fluctuations in interest and exchange rates. Despite these factors, the global passenger volume is projected to fully recover to 2019 levels. However, the Asia-Pacific region, particularly Northeast Asia, is expected to require more time for recovery. Vietnam Airlines’ strategy for 2024 focuses on restructuring assets, capital, investment portfolio, organizational structure, and corporate governance reforms to reduce losses and balance revenue and expenditure.
To achieve this goal, the airline will expand its network with new routes to Europe and Southeast Asia. Domestically, Vietnam Airlines will adjust flight frequencies to capitalize on demand, maintain market share on key routes, and increase capacity on tourism routes. The airline will enhance its product and price management capabilities and invest in narrow-body aircraft projects and A321ceo aircraft configuration conversions to improve operational efficiency. The corporation will also finalize preparations for investment in a comprehensive service complex at Long Thành International Airport.
Vietnam Airlines remains committed to elevating its 5-star quality standards, tailoring exceptional customer experiences, improving work processes, and utilizing digital transformation to enhance management efficiency and customer experience. Cost-saving and cost management programs will continue, alongside efforts to expedite capital divestment and optimize costs, revenue, and financial management. The airline’s restructuring efforts will continue to address the impacts of the COVID-19 pandemic and build a foundation for sustainable development, focusing on completing capital divestment from subsidiaries, extending repayment periods for re-lending loans, promoting organizational restructuring, and investing in technology and digital transformation to enhance labor productivity and resource quality.
