Vietnam Airlines loss soars to $280 mln
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Vietnam Airlines reported a loss of over VND4 trillion ($170 million) in the second quarter and cumulative first-half losses of over VND6.64 trillion ($286 million).
In its consolidated financial statement for the second quarter of 2020, the carrier reported revenues of just VND6 trillion ($258.6 million), a 68 percent fall from the previous quarter.
It blamed the decline on the Covid-19 pandemic, which had forced it to suspend all international flights and, during the social distancing period in early April, limit domestic flights.
Significantly cutting sales, financial and management costs did not enable the airline to remain in the black. Earlier this month its CEO, Duong Tri Thanh, estimated that its full-year revenues would drop by half from last year to just VND50 trillion ($2.16 billion), and the loss would be around VND13 trillion ($560.34 million).
The airline has asked the government for an urgent VND12 trillion ($517.24 million) bailout, claiming it would otherwise be in a very difficult situation by the end of August. It will hold its annual general meeting, which has been delayed twice due to the agenda, on August 10.
Questions & Answers
Q.What was Vietnam Airlines' total loss for the first half of the year?
What was Vietnam Airlines' total loss for the first half of the year?
The airline reported cumulative first-half losses of over VND6.64 trillion, which is equivalent to approximately $286 million. This figure covers their financial performance from January to June.
Q.What is the main reason cited by Vietnam Airlines for its financial decline?
What is the main reason cited by Vietnam Airlines for its financial decline?
The carrier primarily attributes the decline to the Covid-19 pandemic. This forced the suspension of all international flights and limited domestic flights during the social distancing period in early April.
Q.How much financial assistance has Vietnam Airlines requested from the government?
How much financial assistance has Vietnam Airlines requested from the government?
Vietnam Airlines has asked the government for an urgent bailout of VND12 trillion, which equates to about $517.24 million. They claim this is necessary to avoid a very difficult situation by August.
Q.When is the airline's annual general meeting scheduled to take place?
When is the airline's annual general meeting scheduled to take place?
The airline is scheduled to hold its annual general meeting on August 10. This meeting has already been delayed twice due to issues with the agenda.
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