An overview of Vietnam aviation in 2020

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Destination Editor
10:50:22 - February 23, 2021

According to the financial report in 2020, Vietnam Airlines recorded a loss of more than 11 trillion VND while Vietjet announced its 70 billion VND profit. Bamboo Airways also announced its profit after the second year of operation, although this is only an unlisted number of financial statements.

Vietnam Airlines Corporation (Vietnam Airlines) recorded revenue in Q4 2020 at just over 8.2 trillion VND – a 65% decrease compared to the same period last year, and revenue of 40.6 trillion VND in the whole year 2020 – a 69% reduction.

Earlier this year, the Government had a number of rescue packages such as a soft loan of no more than 4 trillion VND with collateral to serve its business activities. Vietnam Airlines also issues shares to existing shareholders to increase its charter capital, in which State Capital Investment Corporation (SCIC) authorized by the Government to purchase.

At the end of January 2021, Vietjet Aviation Joint Stock Company (Vietjet) also announced its financial statements, showing that the parent company achieved a profit after tax of 274 billion VND, and consolidated profit after tax reached 995 billion VND after the end of Q4 2020, which means for the whole year 2020, Vietjet has reached 70 billion VND of consolidated after-tax profit.

According to Vietjet, when the Covid-19 pandemic occurs in 2020, the airline transformed some passenger aircraft into freight one, applied a new operation method to enhance cargo capacity for its fleet, which help it ship more than 60,000 tons of international cargo. Vietjet has also become the first airline approved by the Government to carry cargo on the passenger compartment.

Revenue from both domestic and international freight semi-transportation, including to the US and European markets through codeshares, reached 75% in Q4 2020, which secured the rapid year growth of 16%.

Moreover, Vietjet also operated a total of 78,462 flights and carried more than 15 million passengers in 2020, bringing its ancillary revenue up, accounting for nearly 50% of the total revenue.

Bamboo Airways also showed its 2020 pre-tax profit at more than 400 billion VND, up nearly 34% over last year.

The airline said these thanked to its prompt renavigation to focus on the domestic market, opening routes to potential destinations, especially niche routes, and routes in the ecosystem of FLC during Covid-19.

According to Bamboo Airways, in 2020, it recorded a total of more than 4 million passengers and an increase of 40% in flight schedules compared to 2019.

However, Bamboo Airways’ profit is only announced from the company, not listed with the financial statements yet.

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