The national flag carrier Vietnam Airlines has recorded a net loss of VND3.5 trillion ($155 million) in the third quarter of this year, a sharp decrease compared to nearly VND4.9 trillion and VND4.4 trillion reported in the previous quarters.
The national flag carrier Vietnam Airlines has recorded a net loss of 3.5 trillion VND (155 million USD) in the third quarter of this year. (Photo courtesy of Vietnam Airlines)
The national flag carrier Vietnam Airlines has recorded a net loss of 3.5 trillion VND (155 million USD) in the third quarter of this year, a sharp decrease compared to nearly 4.9 trillion VND and 4.4 trillion VND reported in the previous quarters.
The loss of its parent company is estimated at over 3.3 trillion VND and the total gross loss of the airline is over 3 trillion VND.
In its consolidated financial statement for the third quarter, Vietnam Airlines said that both its revenue and after-tax profit suffered a big drop against last year’s figures,
According to Vietnam Airlines, the total revenue and other incomes in the third quarter of the parent company were down by 2.6 billion VND, representing a year-on-year decrease of 41.3 percent. The corporation attributed it to a 51.9 percent decline in revenue from services in the period.
The carrier said the fourth wave of COVID-19 infections, which took place during the peak time of summer, has affected the corporation’s business results.
In addition to the decrease in profits of the parent company, the profits of subsidiaries providing aviation services like Vietnam Airlines Engineering Company (VAECO) and Noi Bai Airport Services Company (NASCO), also declined sharply, it said.
To deal with the situation, Vietnam Airlines has proactively adopted drastic solutions in business operations to minimise the impacts of the COVID-19 pandemic.
Accordingly, it has taken advantage of the support of partners and suppliers to maintain operations, scale down production while cutting costs, resulting in a significant drop in the Q3 losses compared to the first two quarters.
Notably, on September 25, the carrier increased its charter capital to nearly 8 trillion VND to help improve the financial situation.
Vietnam Airlines said it is expected that with the resumption of regular domestic flights from October, business activities will gradually stabilised and it is ready for the recovery phase in the future./.