Non-aviation service businesses enjoy profits in H1

Hanoi (VNS/VNA) - The non-aviation service industry has been on the fast track to recovery in the past few months, following the flourishing of the aviation market, despite the impact of volatile and escalating fuel prices as well as the international market's failure to recover as expected.

Services such as airline meals, duty-free sales, restaurants, and business lounges thus also benefited.

Southern Airports Services Joint Stock Company (SASCO) announced its Q2 net revenue reached nearly VNĐ296 billion (US$12.65 million), up 216% over the same period last year. Profit after tax of enterprises in the period reached nearly 84 billion VND, up 680% compared to a loss of nearly 14.5 billion VND in the same period last year. This is the highest quarterly profit since 2019.

In the first six months of this year, SASCO recorded a net revenue that doubled last year, reaching 427 billion VND. With a cost of goods sold of 211 billion VND, the gross profit of this business reached nearly 216 billion VND, up 212% over the same period last year.

After deducting expenses, SASCO’s post-tax profit was 85.6 billion VND, while in the same period last year, this business recorded a loss of 1.8 billion VND.

SASCO said that the company's business was gradually recovering when the number of domestic flights increased, international commercial flights gradually resumed, while in the same period last year the company was strongly affected by social distancing.

Sai Gon Ground Services JSC (SAGS) achieved Q2 net revenue of 237.6 billion VND and gross profit of nearly 80 billion VND, up more than 163% and 210% respectively over the same period in 2020.

Accumulated in the first 6 months, SAGS recorded 406 billion VND in net revenue, up 126%, nearly 79 billion VND in profit after tax, up 143% year-on-year.

For this year, SAGS set a consolidated revenue target of 795 billion VND, net profit is estimated at 108 billion VND. Thus, this enterprise has completed 51% of the revenue plan and 73% of the profit plan.

In the first half of this year, Noi Bai Cargo Terminal Service Joint Stock Company (NCTS) also recorded a slight growth of 9% in revenue, reaching nearly 372 billion VND, profit after tax reached 142 billion VND, up 7% over the same period in 2021.

Besides businesses with positive growth, many businesses in the airline service industry, although not recording profits, also saw a remarkable reduction in losses in the first half of this year.

Taseco Air Services JSC (AST), which owns a chain of more than 100 retail stores at Vietnam’s airports, mainly at Noi Bai and Da Nang airports, also started to report profit after two years of recording losses.

In the second quarter, this enterprise recorded nearly 134.6 billion VND in revenue, up 266% year-on-year, nearly 16.6 billion VND of profit after tax.

Accumulated in the first six months of the year, this business has a revenue of over 202 billion VND, up 1.8 times over the same period in 2021, reducing its loss to 7 billion VND while in the same period last year, Taseco's loss was 67 billion VND.

Noi Bai Catering Service JSC (NCS), a subsidiary of Vietnam Airlines, in the first six months of this year, reported revenue doubling, reaching 144.4 billion VND. Its losses fell by 73%, equivalent to nearly 32 billion VND, to negative 11.77 billion VND compared to the loss of negative 43.68 billion VND in the first half of 2021.

Da Nang Airport Service Joint Stock Company (MASCO) also reported its loss declining from negative 7.4 billion in the first half of 2021 to negative 1.35 billion VND in the first half of this year. Meanwhile, revenue grew 130% over the same period last year./.