Vietnam Airlines loss soars to $280 mln

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.