The COVID-19 pandemic has severely dragged down revenues of the Vietnam Airlines Corporation (Vietnam Airlines) and the Airports Corporation of Vietnam (ACV) in the second quarter of this year.
|The Vietnam Airlines Corporation (Vietnam Airlines) suffers losses of 4.03 trillion VND (172.72 million USD) in the second quarter of 2020.|
Vietnam Airlines reported 6 trillion VND (257.1 million USD) in second-quarter revenue, down nearly 70 percent from the previous quarter, as a result of a month-long social distancing order in April and the ongoing suspension of international flights.
The corporation suffered quarterly losses of 4.03 trillion VND (172.72 million USD), raising the total losses in the first half of the year to more than 6.64 trillion VND.
In mid-July, the State-run firm estimated its revenue would halve to around 50 trillion VND and losses would mount to 13 trillion VND this year.
Vietnam Airlines is seeking an urgent bailout of 12 trillion VND from the government to help it overcome difficulties.
By the end of the second quarter, its asset totalled 66.69 trillion VND, a decline of 12.7 percent from the beginning of the year and its equity shrunk by more than 38 percent to close to 11.43 trillion VND.
Meanwhile, ACV has recorded post-tax losses of over 365 billion VND from April to June as its revenues plunged 76.6 percent from the same period last year to over 1.04 trillion VND.
A year earlier, the company enjoyed about 1.7 trillion VND in profit.
The second-quarter losses have been offset by 1.55 trillion VND in first-quarter post-tax profit before the coronavirus hit the aviation industry. In the first half of 2020, the airport operator posted more than 1.19 trillion VND in post-tax profit.
ACV projected that the number of air passengers would reduce by 41 percent year-on-year to 69.2 million in 2020 while the volume of cargoes going through 21 airports across Vietnam would fall 13 percent to 1.34 million tonnes./.VNA
The attempt by the government to rescue Vietnam Airlines with investment capital of VND12 trillion raises a question about the equality between state-owned and private enterprises.
The members of the Prime Minister’s Economic Advisory Council all agree that it is necessary for the State to help state-owned Vietnam Airlines overcome difficulties caused by Covid-19.