Vietnam Airlines records loss of 155 million USD in Q3
Hanoi (VNA) – The national flag carrier Vietnam Airlines has recorded
a net loss of 3.5 trillion VND (155 million USD) in the third quarter of this
year, a sharp decrease compared to nearly 4.9 trillion VND and 4.4 trillion VND
reported in the previous quarters.
The
loss of its parent company is estimated at over 3.3 trillion VND and the total
gross loss of the airline is over 3 trillion VND.
In its consolidated financial statement for the third quarter, Vietnam Airlines
said that both its revenue and after-tax profit suffered a big drop against last year’s
figures,
According
to Vietnam Airlines, the total revenue and other incomes in the third quarter of
the parent company were down by 2.6 billion VND, representing a year-on-year
decrease of 41.3 percent. The corporation attributed it to a 51.9 percent decline
in revenue from services in the period.
The carrier said the
fourth wave of COVID-19 infections, which took place during the peak time of
summer, has affected the corporation’s business results.
In addition to the
decrease in profits of the parent company, the profits of
subsidiaries providing aviation services like Vietnam Airlines Engineering
Company (VAECO) and Noi Bai Airport Services Company (NASCO), also declined
sharply, it said.
To
deal with the situation, Vietnam Airlines has proactively adopted drastic solutions
in business operations to minimise the impacts of the COVID-19 pandemic.
Accordingly,
it has taken advantage of the support of partners and suppliers to maintain
operations, scale down production while cutting costs, resulting
in a significant drop in the Q3 losses compared to the first two
quarters.
Notably,
on September 25, the carrier increased its charter capital to nearly 8 trillion
VND to help improve the financial situation.
Vietnam
Airlines said it is expected that with the resumption of regular domestic flights from October, business activities will
gradually stabilised and it is ready for the recovery phase in the future./.