Vietnam Airlines suffers $483 mln loss
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Vietnam Airlines reported a loss of over VND11.1 trillion ($483 million) last year as the Covid-19 pandemic grounded all its international flights.
The figure was lower than its projection in December of over VND12 trillion.
Revenues were down nearly 59 percent to VND40.83 trillion as its total number of flights fell by over 27 percent to 86,978.
The government recently approved a bailout for the carrier, with the State Bank of Vietnam (SBV) allowed to provide a refinanced loan of up to VND4 trillion at zero interest.
Vietnam Airlines also received permission to issue more shares to existing shareholders to increase its capital.
The country’s aviation industry suffered badly last year due to flight restrictions to curb the spread of the novel coronavirus, and the number of air passengers plunged by 41 percent to 32.3 million, according to the General Statistics Office.
Questions & Answers
Q.What was the total financial loss reported by Vietnam Airlines last year?
What was the total financial loss reported by Vietnam Airlines last year?
Vietnam Airlines reported a loss of over VND11.1 trillion, which is equivalent to $483 million. This figure was slightly lower than their initial projection from December.
Q.How did the airline's revenue compare to the previous year?
How did the airline's revenue compare to the previous year?
The airline's revenues decreased by nearly 59 percent, reaching VND40.83 trillion. This was due to a significant reduction in the total number of flights operated.
Q.What government support has Vietnam Airlines received?
What government support has Vietnam Airlines received?
The government approved a bailout, allowing the State Bank of Vietnam to provide a zero-interest refinanced loan of up to VND4 trillion. The airline also gained permission to issue more shares to existing shareholders.
Q.What was the impact of the pandemic on overall air passenger numbers in Vietnam?
What was the impact of the pandemic on overall air passenger numbers in Vietnam?
The number of air passengers in the country fell by 41 percent to 32.3 million last year. This significant drop was a direct consequence of flight restrictions imposed to control the coronavirus spread.
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