The national flag airline’s domestic flights in the first eight months rose 18% against the same period of 2019, but international flights only recovered 18% over the same period of 2019 due to the Russia-Ukraine military conflict, a spike in fuel prices and travel restrictions in major markets such as China, Taiwan and Russia, the source said.
Thus, revenue in August could not alleviate the negative impacts caused by Covid-19, foreign exchange volatility and the fuel price hike.
The current average ticket price of Vietnam Airlines, down 11% over 2019, and its fleet operating at just 75% of its capacity contributed to the slow recovery.
“All airplanes that operate only in the transport business like us would make a loss,” the source said.
The airline incurred a loss of VND11 trillion in 2020, VND13 trillion in 2021 and a net loss of VND5 trillion in the first half of this year.
Vietnam Airlines’ total loss of 2022 is estimated at over VND9.3 trillion. It is not until 2024 that the firm will be able to clean its balance sheet provided that the air transport market will not face any disruptions.
Under the Securities Law, a company that incurs a loss for three consecutive years, has an accumulated loss exceeding its charter capital, or records negative equity in the latest annual financial report will face delisting from the stock exchange.
Source: Saigon Times