Pandemic causes Q1 loss of $110 million, says Vietnam Airlines

By Anh Tu April 29, 2020 | 08:23 pm PT

An aircraft of Vietnam Airlines prepares to take off from Noi Bai International Airport in Hanoi. Photo courtesy of Vietnam Airlines.

Vietnam Airlines has reported a loss of over VND2.6 trillion ($110 million) in the first quarter, which is higher than its 2019 net profit.

Last year it had reported a net profit of VND2.54 trillion ($108 million), including VND1.2 trillion in the first quarter.

The airline blamed the first quarter loss on the coronavirus pandemic's severe and direct impact on the aviation industry.

Its revenues were VND18.9 trillion ($807 million) during the period, down almost 26.5 percent year-on-year.

The carrier’s assets decreased by 7.2 percent to VND70.94 trillion ($3.03 billion), while its equity dropped 14.3 percent to VND15.9 trillion.

Its CEO, Duong Tri Thanh, has predicted the airline would lose revenues of around VND50 trillion ($2.14 billion) this year, and the aviation industry would be set back by three or four years.

The Committee for Management of State Capital at Enterprises has predicted that Vietnam Airlines could suffer a loss of over VND19.6 trillion ($837 million) this year if the pandemic persists until Q4.