Vietjet expects profits plunge due to coronavirus

By Dat Nguyen   June 25, 2020 | 04:52 pm GMT+7
Vietjet expects profits plunge due to coronavirus
A Vietjet aircraft taxis on a runway at Tan Son Nhat International Airport in Ho Chi Minh City. Photo by Shutterstock/Phuong D. Nguyen.

Budget carrier Vietjet targets a pre-tax profit of VND100 billion ($4.3 million) for 2020, a drop of 98 percent from last year, due to coronavirus impacts.

The airline has also lowered its revenue target by 29 percent to VND36 trillion ($1.54 billion), it said in a statement.

These are the best figures the company could have considering the impacts of the coronavirus pandemic, the firm added.

Vietjet's passenger number is set to fall by 19 percent to 20.2 million, and flights by 15 percent to 118,000.

But as domestic flights have all been resumed, it plans to expand its fleet to 90 jets by the end of the year, up 12 from 2019.

Vietnamese airlines had to suspend most flights in March and April to contain the novel coronavirus, which resulted in plunging revenues.

Flag carrier Vietnam Airlines anticipates a loss of up to VND16 trillion ($685 million) this year and its low-cost arm Jetstar Pacific with a loss of up to VND2 trillion ($86 million).

Bamboo Airways posted a loss of VND1.5 trillion ($64 million) in the first quarter.  

In the first five months this year, domestic airlines served 11.3 million passengers, down 49 percent year-on-year.

 
 
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