Jetstar Pacific Airlines (JPA) accumulated losses of 2,564 billion VND (122.1 million USD) during 2008-2013, the latest financial report of Vietnam Airlines Corporation, JPA’s mother company, revealed.

Between 2008 and 2009, the carrier’s losses were mainly due to fuel hedging and penalties for breaking its airplane leasing contracts signed in 2008.

Meanwhile, post-tax losses in 2011 doubled the previous year’s figure, attributable to increasing operational and fuel costs, and the high maintenance costs for the more than 15-year-old fleet of Boeing 737s.

In 2012, the low-cost airline lost another 404 billion VND (19.2 million USD), with 190 billion VND (9 million USD) invested in a fleet of Airbus A320s to replace the old Boeing 737s.

The 2013 losses were reported at 274 billion VND (13 million USD), despite a 3 percent year-on-year increase in revenue and a surge of 16.2 billion VND (771,428 USD) in customer sales.

At the end of 2013, the carrier was still in financial difficulties, with a capital of minus 736 billion VND (35 million USD).

Jetstar Pacific is Vietnam’s first low-cost carrier. Its precursor was Pacific Airlines, co-founded by Saigontourist and Vietnam Airlines. Then Vietnam Airlines investment in Pacific Airlines was handed over to the State Capital Investment Corporation (SCIC).

The carrier was rebranded as Jetstar Pacific in 2007, when Australian airline Quantas purchased 27 percent of the company, with the remainder owned by SCIC and Saigontourist.

In February 2012, Vietnam Airlines took over Jetstar Pacific. By the end of 2013, its registered capital was over 1.86 trillion VND (885.7 million USD), with Vietnam Airlines holding 67.83 percent and Qantas, 30 percent.-VNA