Vietnam Airlines posts a loss of 155 million USD in Q3 | Business

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National carrier Vietnam Airlines recorded a net loss of 3.5 trillion VND (155 million USD) in the third quarter of this year. (Photo courtesy of Vietnam Airlines)

Hanoi (VNA) – National flag carrier Vietnam Airlines recorded a net loss of VND3.5 trillion (USD155 million) in the third quarter of this year, a sharp drop from nearly VND4.9 trillion and VND4.4 trillion of VNDs reported in previous quarters.

Its parent company’s loss is estimated at over VND3.3 trillion and the airline’s total gross loss is over VND3 trillion.

In its third quarter consolidated financial statements, Vietnam Airlines said its two income and profit after tax suffered a sharp decline compared to last year’s figures,

According to Vietnamese airlines, the total revenue and other income of the parent company in the third quarter decreased by VND 2.6 billion, representing a decrease of 41.3% year-on-year. The company attributed it to a 51.9% decline in services revenue during the period.

The carrier said the fourth wave of COVID-19 infections, which occurred during the peak summer period, affected the company’s business results.

Apart from the lower profits of the parent company, the profits of subsidiaries providing aviation services such as Vietnam Airlines Engineering Company (VAECO) and Noi Bai Airport Services Company (NASCO), also fell sharply, he added.

To cope with the situation, Vietnam Airlines has proactively adopted drastic solutions in business operations to minimize the impacts of the COVID-19[female[feminine pandemic.

As a result, it took advantage of the support of partners and suppliers to maintain operations, reduce production while reducing costs, which led to a significant decline in Q3 losses compared to the first two quarters.

Notably, on September 25, the carrier increased its charter capital to almost VND 8 trillion to help improve the financial situation.

Vietnam Airlines said it is expected that with the resumption of regular domestic flights from October, business operations will gradually stabilize and it is ready for the recovery phase in the future./.

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