Vietnam Airlines accumulated loss nears charter capital
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The accumulated loss of national flag carrier Vietnam Airlines climbed to VND21.98 trillion ($928.39 million) last year, roughly the same as its charter capital.
The airline was hit hard by the Covid-19 pandemic that saw borders closed and commercial flights suspended for two years.
It posted a loss of VND13.02 trillion last year alone, with revenue dropping 31 percent year on year to VND28.09 trillion.
The airline increased its charter capital by 56 percent to VND22.14 trillion last year by issuing 800 million shares, with the State Capital Investment Corporation (SCIC) contributing an additional VND6.89 trillion.
The Commission for Management of State Capital at Enterprises (CMSC) now holds a 55.2 percent stake in the flag carrier, the SCIC 31.14 percent, and Japan’s ANA airline 5.62 percent.
The airline has been increasing the number of flights it operates since the beginning of this year as the government began lifting restrictions based on rising vaccination rates.
It operated 7,314 flights last month, up nearly 21 percent year-on-year.
The airline has proposed that the government raises the price cap for domestic travel from April 1 and add a fuel surcharge for local routes as fuel prices have soared in recent months.
Questions & Answers
Q.What was Vietnam Airlines' total accumulated loss at the end of last year?
What was Vietnam Airlines' total accumulated loss at the end of last year?
Last year, the national flag carrier's accumulated loss reached VND21.98 trillion, which is approximately the same as its total charter capital. This figure represents a significant financial challenge for the airline.
Q.How did the airline's revenue perform last year compared to the previous year?
How did the airline's revenue perform last year compared to the previous year?
Last year, Vietnam Airlines' revenue dropped by 31 percent, settling at VND28.09 trillion. This decline contributed to a loss of VND13.02 trillion recorded for the year alone.
Q.What measures has Vietnam Airlines proposed to the government to improve its financial situation?
What measures has Vietnam Airlines proposed to the government to improve its financial situation?
The airline has proposed two key measures: raising the price cap for domestic travel from April 1 and adding a fuel surcharge for local routes. These are in response to recent soaring fuel prices.
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