Vietnam Airlines earns $3 bln revenue in 2022

The national flag carrier Vietnam Airlines achieved revenues of VND72,359 billion ($3 billion) in 2022, reaching 121% of the year plan and VND3,900 billion ($165 million) higher than the combined sum in 2020 and 2021.

In 2022, the carrier transported more than 18 million passengers, reaching 107.8% of the plan, and 211,900 tons of goods, general director Le Hong Ha told the company's year-end conference.

Ha said that the airline has implemented many solutions to save and cut costs by nearly VND4,300 billion ($181.9 million). Vietnam Airlines has reduced its loss by nearly VND70 billion ($2.96 million) compared to the plan.

According to the airline, in 2023, the volatile business environment with risks of economic recession, high inflation, Russia-Ukraine conflict, and rising fuel prices are expected to affect travel demand and recovery speed of the aviation market.

The corporation has set out the key tasks including: absolute safety; business efficiency exceeding the year plan; improved efficiency of resource use; labor productivity rising by 14% compared to 2019; continuing major programs like comprehensive restructuring of the corporation, speeding up digital transformation, upgrading service quality and improving the corporation's income.

Nguyen Hoang Anh, a Party Central Committee member and chairman of the Commission for the Management of State Capital at Enterprises, Vietnam Airlines' parent entity, said that 2023 is forecast to bring both opportunities and challenges for air transport enterprises.

Adverse factors can include prolonged geopolitical conflicts, fuel prices, unpredictable exchange rate fluctuations, rising inflation, and declining purchasing power.

Favorable factors come from the fact that important international markets have opened to international visitors, while Chinese authorities have officially announced that from January 8, 2023, the country will fully reopen after three years of border closure due to the Covid-19 pandemic.

At the same time, recovery of the domestic market and stable growth of the domestic economy is also a very favorable factor for Vietnam Airlines and other aviation enterprises.

A master plan on solutions to remove difficulties for Vietnam Airlines due to the impact of the Covid-19 pandemic in the 2021-2025 period is awaiting official approval.