Vietnam Airlines reports highest quarterly loss in company history

Vietnam Airlines Group on April 30 posted a loss of 4.97 trillion dong ($215.6 million) for the first quarter 2021, almost double from the same quarter last year and its largest quarterly loss ever.

The result came as the Covid-19 pandemic keeps hampering the global aviation industry, international flights are widely limited for almost a year now and domestic traffic also remains subdued.

Revenue of the group, which comprises Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company, or Vasco, fell 60% to around 7.5 trillion dong on a yearly basis, the airline said.

Like its peer Thai Airways, Vietnam Airlines is facing the risk of getting delisted from the stock exchange as its accumulated debt of 14.22 trillion dong is already surpassing its charter capital, albeit so far only marginally.

The airline has already received a respective warning by the Ho Chi Minh City Stock Exchange.

Capital raise and government loan planned

It has said earlier this months that it plans a capital raise of eight trillion dong and would also receive an interest-free government loan of four trillion dong to meet its financial obligations.

Vietnam Airlines, founded in 1965, once was a fully state-owned airline but went public in 2014. As of today, Vietnam’s government holds a 86-per cent stake, Japan’s All Nippon Airways holds 8.8 per cent and the rest are other shareholders and free float.

Before the pandemic, the airline flew to 64 destinations in 17 countries and, as of end-2020, had a fleet of 101 Boeing, Airbus and ATR planes.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Vietnam Airlines Group on April 30 posted a loss of 4.97 trillion dong ($215.6 million) for the first quarter 2021, almost double from the same quarter last year and its largest quarterly loss ever. The result came as the Covid-19 pandemic keeps hampering the global aviation industry, international flights are widely limited for almost a year now and domestic traffic also remains subdued. Revenue of the group, which comprises Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company, or Vasco, fell 60% to around 7.5 trillion dong on a yearly basis, the airline said. Like its peer Thai Airways, Vietnam...

Vietnam Airlines Group on April 30 posted a loss of 4.97 trillion dong ($215.6 million) for the first quarter 2021, almost double from the same quarter last year and its largest quarterly loss ever.

The result came as the Covid-19 pandemic keeps hampering the global aviation industry, international flights are widely limited for almost a year now and domestic traffic also remains subdued.

Revenue of the group, which comprises Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company, or Vasco, fell 60% to around 7.5 trillion dong on a yearly basis, the airline said.

Like its peer Thai Airways, Vietnam Airlines is facing the risk of getting delisted from the stock exchange as its accumulated debt of 14.22 trillion dong is already surpassing its charter capital, albeit so far only marginally.

The airline has already received a respective warning by the Ho Chi Minh City Stock Exchange.

Capital raise and government loan planned

It has said earlier this months that it plans a capital raise of eight trillion dong and would also receive an interest-free government loan of four trillion dong to meet its financial obligations.

Vietnam Airlines, founded in 1965, once was a fully state-owned airline but went public in 2014. As of today, Vietnam’s government holds a 86-per cent stake, Japan’s All Nippon Airways holds 8.8 per cent and the rest are other shareholders and free float.

Before the pandemic, the airline flew to 64 destinations in 17 countries and, as of end-2020, had a fleet of 101 Boeing, Airbus and ATR planes.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply