Embattled Pacific Airlines incurs $59M loss

By Anh Tu April 23, 2024 | 05:00 pm PT

A Pacific Airlines aircraft is seen on a runway. Photo courtesy of Pacific Airlines

Pacific Airlines made a loss of nearly VND1.5 trillion (US$58.9 million) last year due to rising costs and lower-than-expected passenger numbers, according to parent company Vietnam Airlines.

But the loss was 28% lower than in 2022, Vietnam Airlines said in its recently published financial reports.

The budget carrier’s revenues were up 26% to VND4.39 trillion.

Both international and domestic passenger numbers were below its targets.

Like other airlines, it too struggled with high fuel prices and exchange rate fluctuations last year.

Vietnam Airlines said it would seek solutions to help the subsidiary overcome financial difficulties, negotiating with debtors to delay payments and providing subsidized support.

Pacific Airlines, established in 1991, has faced numerous challenges in recent years.

Between 2020 and 2022, the Covid years, it suffered annual losses of over VND2 trillion.

Last month it had to return all its leased airplanes due to its inability to make payments for them, forcing it to temporarily cease operations.

It said it would share infrastructure and resources with and lease three jets from Vietnam Airlines for now.

But it has been over a month and the airline has yet to resume services.

Currently, its sole activity involves providing ground services for Bamboo Airways.