Airfares will start to increase from the end of 2023, continue throughout 2024 and show no signs of cooling down. Especially during the Lunar New Year 2025, ticket prices will continue to peak as travel demand increases dramatically. Many domestic flights are "sold out".
In that context, domestic airlines and aviation services continuously announced huge profits, showing signs of strong recovery after a difficult period.
Accordingly, Vietnam Airlines Corporation - JSC (Vietnam Airlines - Code: HVN) announced an estimated consolidated revenue of VND 114,741 billion in 2024, an increase of 23% over the previous year. Notably, the airline recorded pre-tax profit of VND 7,324 billion - the highest level in history and marking the end of 4 consecutive years of losses.
Last year, Vietnam Airlines transported 22.7 million passengers, an increase of 8% compared to 2023; the volume of transported goods reached 314,700 tons, an increase of 40% over the same period.
In addition to aviation companies, the aviation service sector also grew strongly in 2024, with many companies reporting record high profits. Saigon Cargo Services Corporation (Code: SCS) recorded net revenue in the fourth quarter of 2024 of VND 294 billion, an increase of 49% over the same period last year. Profit after tax also increased sharply by 33% to VND 170 billion.
SCS said that its business results in the last quarter grew significantly thanks to a sharp increase in cargo volume. Total cargo volume in 2024 reached 267,369 tons, up 41% over the previous year. Of which, international cargo increased by 1.5 times to 205,141 tons, accounting for 77% of total output. Domestic cargo also recorded an increase of 18%, reaching 62,228 tons.
The signing of a contract to provide cargo handling services for Qatar Airways at Tan Son Nhat International Airport from February 2024 also contributed significantly to this result.
Accumulated for the whole year of 2024, SCS recorded revenue of VND 1,036 billion and profit after tax of VND 693 billion, up 47% and 39% respectively over the same period. This is the highest revenue and profit of the enterprise to date.
Another company, Tan Son Nhat Airport Services JSC (Code: SAS), has just reported a fourth quarter profit that "increased by several times" compared to the same period last year.
SAS recorded revenue of VND789 billion in the last quarter of 2024, up 14% year-on-year. Profit after tax reached nearly VND136 billion, three times higher than the same period last year.
Explaining the sudden high profit, SAS said that this growth mainly came from the strong recovery of the aviation market. The company has applied many sales programs to stimulate customers to use services and goods.
SAS also said that in 2023, the Company made provisions for bad debts of Bamboo Airways JSC with a value of VND 42 billion. At the same time, good cost control contributed to improving business efficiency.
Accumulated for the whole year, the Company reported a profit after tax of VND 430 billion, an increase of 51% compared to 2023 and the highest level in the company's history.
Notably, Vietnam Airports Corporation - JSC (Code: ACV) recently announced that its total revenue in 2024 is estimated at VND 21,466 billion, exceeding the annual target by 6% and increasing by 8% compared to 2023. Pre-tax profit is estimated at VND 11,981 billion, increasing by 35% compared to 2023 and exceeding the annual plan by 28%. This is also ACV's highest annual revenue and profit ever.
