return icon Vietnamnet.vn

Vietnam Airlines reports huge losses

Vietnam Airlines Group, listed as HVN on the HCM Stock Exchange, earned nearly VND24 trillion (US$1.04 billion) in total consolidated revenue in the first nine months of this year, marking an estimated loss of VND10.75 trillion, 

 

said Tran Thanh Hien, the Chief Accountant of the Vietnam Airlines Department of Finance and Accounting. 

Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines and VASCO, still took the leading position in the domestic market with 51.7 per cent market share in passenger transportation. — Photo Vietnam Airlines

Hien was speaking at a press conference held in Ha Noi on Tuesday.

He said the group’s third quarter revenue was 32 per cent compared with the same period last year, even though it was normally the peak quarter with the highest revenue of the year.

“The aviation industry is in an extremely difficult time. Around the world, many airlines have to sell their assets, including key businesses such as catering and maintenance services. There are even companies selling their headquarters or renting them out to survive,” Hien said.

Facing such difficulties, Hien said the carrier had taken initiatives to solve the impacts of the COVID-19 pandemic, seeking financial solutions since the outbreak began and the cash flow declined rapidly, including cost cutting. “We have also proposed shareholders, including the State which owns an 86 per cent of stake, to give us assistance.”

“We are proactively seeking and taking advantage of every opportunity to increase revenue, such as promoting cargo transportation and charter flights to carry Vietnamese passengers back home and expert visitors, and selling old aircraft,” he added.

Hien said Vietnam Airlines had cut up to VND5.34 trillion in costs, of which the most difficult decision was to cut wages and reduce the number of workers. At the same time, the group also worked with banks to restructure loans and delay the repayment periods.

“This is how Vietnam Airlines can ensure liquidity, maintain operations and survive.”

At the conference, Hien also denied reports that Vietnam Airlines was filing for bankruptcy. “This information is wrong. We are doing our best to overcome the crisis.”

Despite the outbreak, Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines and VASCO, still took the leading position in the domestic market with 51.7 per cent market share in passenger transportation.

In the January-September period, the group conducted 46,700 safe flights, transporting nearly 11.9 million passengers and 146,000 tonnes of goods.

Although the third quarter of this year recorded positive growth in passenger volume compared to the second quarter, the group’s result is still at a very low level due to the fact that the international aviation market has not been reopened fully. Meanwhile, domestic airlines increased load factor and implemented many stimulus programmes to promote tourism according to the Government’s major goals.

Vietnam Airlines is currently exploiting more than 60 domestic routes with an average of 300 flights per day. Domestic passenger volume exceeded 12 per cent over the same period last year, marking an impressive recovery since the second wave of COVID-19 in July in Da Nang.

During this period, Vietnam Airlines and Pacific Airlines operated more than 100 return commercial flights carrying more than 30,800 Vietnamese citizens back home from nearly 30 countries, conducted more than 2,600 cargo flights, including free-of-charge medical equipment, to all parts of Viet Nam and many countries, contributing to ensuring trade and supporting prevention of the outbreak on a global scale.

Director of Vietnam Airlines Communication Department Dang Anh Tuan said the passenger transport activities of Vietnam Airlines were recording positive changes in the context of rapid and effective control of the disease by the Government. The domestic market had recovered and some international routes had been reopened under strict control and prevention of the outbreak.

“Vietnam Airlines is ready to open international routes and additional domestic routes right after the Government gives the green light to the aviation industry. We have prepared to bring the best and safe services to all passengers,” Tuan said.

In the last months of the year, Tuan said the group would continue to closely monitor disease developments and follow the market to have an appropriate plan to restore the flight network, ensuring the highest priority to pandemic prevention and meeting the travel demand of passengers. — VNS

Vietnam Airlines conducts first routine international flight since pandemic

Vietnam Airlines conducts first routine international flight since pandemic

For the first time in six months, Vietnam Airlines' first routine international commercial flight took off from Hanoi on September 19 morning, heading to Japan.

MORE NEWS

Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.
back_to_top