Vietnam Airlines posts $113 mln Q1 loss

By Anh Tu   May 21, 2022 | 12:29 am PT
Vietnam Airlines posts $113 mln Q1 loss
Vietnam Airlines aircraft seen at Tan Son Nhat International Airport in Ho Chi Minh City in January 2021. Photo by VnExpress/Quynh Tran
Vietnam Airlines remained in the red in Q1 despite revenues rising to a two-year high, with net losses of VND2.62 trillion (US$113.1 million).

Revenues were up 55 percent year-on-year to VND11.6 trillion, the highest since 2020, when Covid-19 started to cripple the aviation industry.

But it reported a ninth consecutive quarterly loss, with a total gross loss from the sales of products and services of around VND1.6 trillion due to higher costs.

Fuel, for example, cost VND465 billion more than budgeted and accounted for 30 percent of transport costs.

The carrier said the results clearly reflected the impact of Covid on the aviation industry despite the relatively quick recovery by the domestic market.

Meanwhile, international services remain in limbo, and the Russia-Ukraine crisis has driven fuel prices up sharply.

As of March 31, Vietnam Airlines’ accumulated losses were VND24.5 trillion, some VND2.16 trillion higher than its charter capital.

The management said the airline could "basically maintain its liquidity until this year-end" based on the expected recovery by the industry.

But it also sought the government’s support to ensure liquidity and seeks to accelerate the restructuring of subsidiaries and associates.

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