Vietravel invests $25.8 mln in its carrier

Tourism company Vietravel has decided to invest an additional VND593.5 billion ($25.8 million) in Vietravel Airlines this year.

The additional capital lifts its total investment in the new carrier to nearly VND1.3 trillion.

Based at the Phu Bai International Airport in the central province of Thua Thien Hue, Vietravel Airlines was licensed in April 2020 with a charter capital of VND700 billion.

Early this year, it began operating flights on several domestic routes with three aircraft and is not expected to break even for at least a few years.

The company’s operations have been hit by the Covid-19 pandemic over the past two years. It resumed business on Oct. 18.

It has reported losses of VND90 billion in 2020, twice the profits it earned in 2019, but is targeting pre-tax profits of VND10 billion this year.