Vietnam Airlines warns that a full recovery is still a long way off, although travel is starting to resume as the impact of the coronavirus pandemic wears off.
In a Vietnamese-language stock filing, the carrier notes that it has racked up losses of more than 24.5 trillion dinars ($1.1 billion) since the start of the pandemic.
He warns, however, that the hard times will continue until the end of 2023. Still, he hopes to make a profit by the end of 2022.
Due to international travel restrictions and outbreaks in Vietnam in 2021, the carrier says its “usual routine” has effectively been halted from March 2020 to March 2022.
Given its losses, the common carrier was forced to undertake a restructuring that runs from 2021 to 2025, in a bid to improve its cash flow.
This year and next, Vietnam Airlines also aims to sell older planes and conduct sale and leaseback transactions on planes it plans to keep.
During 2023-24, Vietnam Airlines also plans to issue shares to raise equity. This follows a previous fundraising exercise in September 2021 which raised 8 trillion dinars.
The carrier also recently unloaded its remaining 35% stake in Cambodia Angkor Air, generating proceeds of $35 million.
Cirium fleet data indicates that Vietnam Airlines has an in-service fleet of 87 aircraft, including 42 Airbus A321s and 16 A321neos. The carrier also operates 15,787 (11 -9 and four -10) and 13 A350-900s. In addition, it has a single ATR 72-500.