Vietnam Airlines posts biggest quarterly loss on record

0


[ad_1]

By Anh Ma Apr 30, 2021 | 11:57 GMT +7

A Vietnam Airlines plane lands at Tan Son Nhat International Airport in Ho Chi Minh City. Photo by VnExpress / Quynh Tran.

Vietnam Airlines Group posted its biggest quarterly loss on record in the first quarter of 2021 to 4.97 trillion VND ($ 216 million), prompting its shares to be delisted.

The loss was almost double that of last year as the national carrier continued to go through one of the most difficult times for the aviation industry. International flights remain restricted after more than a year and the Covid-19 epidemic at the end of January hampered the resumption of domestic travel.

Its revenues have fallen 60% year on year to over VND 7.5 trillion.

The group, made up of Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company (VASCO), saw its accumulated losses reach VND 14.22 trillion, slightly exceeding its charter capital.

If its performance continues in the same vein, the airline’s HVN ticker on the Ho Chi Minh Stock Exchange (HoSE) could be delisted. He had already received a warning from the stock market on April 15.

HVN has only gained 2.5% this year despite the fact that the benchmark VN-Index has repeatedly climbed to new all-time highs with an increase of 12.2%.

Vietnam Airlines, 86 percent owned by the government, plans to issue more shares to existing shareholders in the first half of this year to raise 8 trillion dong to pay off growing debts.

The government approved a plan in March to provide the carrier with an interest-free loan of up to 4 trillion dong. The group can also request a loan of the same amount from its shareholders this year and the next.

[ad_2]

Share.

Leave A Reply