Vietnam Airlines reports third-quarter loss of $154m

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According to a summary of the third-quarter consolidated financial statements, Vietnam Airlines had net revenue of VND 4.7 trillion, down 37.6 percent year-on-year.

The sale of goods fell 20% year-on-year to VND 7.7 trillion.

The airline declared a total gross loss in the sale of products and services of around VND 3 trillion.

While its financial income more than quadrupled over the same period to more than VND560 billion, administrative expenses and product cost costs increased to more than VND347.5 billion and 282.2 billion VND, respectively, resulting in the reported net loss.

The third quarter loss was lower than the losses of VND 4.9 trillion and VND 4.4 trillion recorded in the first and second quarters respectively.

Its loss in the first 9 months of the year exceeded VND 12.1 trillion.

The carrier explained that the sharp drop in consolidated profits in the third quarter was not only due to the drop in profits of the parent company, but also because the profits of subsidiaries providing air services, such as Vietnam Airlines Engineering Company (VAECO ) and Noi Bai Airport Services Company (NASCO), also fell sharply.

Vietnam Airlines said it proactively implemented drastic solutions in business operations to minimize the impacts of the Covid-19 pandemic, resulting in a significant drop in losses in the third quarter compared to the first two quarters.

As of September 25, the carrier has increased its charter capital to VND 8 trillion.

The carrier said business operations have gradually stabilized and it is preparing conditions for the recovery and development phase after domestic flights are allowed to operate normally.

As of September, Vietnam Airlines’ total assets were valued at over VND67 trillion, up over VND4.5 trillion from the start of the year.

The company posted outstanding debt of VND65.5 trillion from the start of the year and more than VND1.4 trillion in equity, a decrease of nearly VND4.6 trillion over the same period. Of this amount, short-term debt is approximately VND 42.2 trillion, up from over VND 9.7 trillion.

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