Accumulated loss of Vietnam Airlines nears charter capital

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Vietnam Airlines planes are seen at Noi Bai International Airport in Hanoi in October 2021. Photo by VnExpress/Giang Huy

National carrier Vietnam Airlines’ cumulative loss soared to VND21.98 trillion ($928.39 million) last year, roughly the same as its charter capital.

The airline has been hit hard by the Covid-19 pandemic which saw borders closed and commercial flights suspended for two years.

It posted a loss of VND13.02 trillion last year alone, with revenue down 31% year-on-year to VND28.09 trillion.

The airline increased its charter capital by 56% to VND22.14 trillion last year by issuing 800 million shares, with the State Capital Investment Corporation (SCIC) contributing an additional VND6.89 trillion.

The Commission for Management of State Capital in Enterprises (CMSC) now owns a 55.2% stake in the national carrier, SCIC 31.14% and Japanese airline ANA 5.62%.

The airline has increased the number of flights it operates since the start of this year as the government began lifting restrictions based on rising vaccination rates.

It operated 7,314 flights last month, up nearly 21% year-on-year.

The airline has proposed that the government raise the price cap for domestic travel from April 1 and add a fuel surcharge for local routes as fuel prices have soared in recent months.

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