Vietnam Airlines cuts losses by nearly half

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By Anh Tu July 29, 2022 | 10:05 p.m. PT

A Vietnam Airlines plane is seen at Noi Bai International Airport in Hanoi in April 2022. Photo by VnExpress/Giang Huy

Vietnam Airlines managed to cut its losses by 44% year-on-year in the second quarter to VND2.48 trillion ($106.25 million), thanks to strong summer travel demand.

Its revenue nearly tripled to VND18.43 trillion, beating its target by 35%.

This is the highest quarterly revenue since 2020, when travel was not yet affected by Covid-19.

But high fuel prices remain a sore point for the carrier.

At the end of June, JetA1 fuel was above US$160 a barrel, double the average price of last year.

Demand for international travel has not fully recovered, especially from Northeast Asian countries, which were a major source of tourists for Vietnam before the pandemic.

The airline also saw its sales spend double to VND 660 billion.

First-half losses decreased by 39% to VND5.1 trillion.

Its cumulative losses soared to VND28.9 trillion. The airline expects the summer travel season to last until the end of August and the easing of entry restrictions in other countries will help boost its revenue.

Vietnam Airlines and its low-cost subsidiaries Pacific Airlines and Vietnam Air Services Company together carried nearly 9.5 million passengers in the first six months, 24.6 percent more than expected.

Vietnam Airlines accounted for eight million.

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