The national airline’s domestic flights in the first eight months increased by 18% compared to the same period of 2019, but international flights recovered only 18% in the same period of 2019 due to the military conflict Russian-Ukrainian, soaring fuel and travel prices. restrictions in major markets such as China, Taiwan and Russia, the source said.
Thus, August’s revenues could not mitigate the negative impacts caused by Covid-19, currency volatility and rising fuel prices.
Vietnam Airlines’ current average ticket price, down 11% from 2019, and its fleet operating at just 75% capacity have contributed to the slow recovery.
“Any planes that operate solely in the transportation business like us would make a loss,” the source said.
The airline suffered a loss of VND 11 trillion in 2020, VND 13 trillion in 2021 and a net loss of VND 5 trillion in the first half of this year.
The total loss of Vietnam Airlines in 2022 is estimated at over VND 9.3 trillion. It will be necessary to wait until 2024 for the firm to be able to clean up its balance sheet provided that the air transport market does not experience any disruption.
Under the securities law, a company that suffers a loss for three consecutive years, has a cumulative loss greater than its share capital, or registers negative equity in the last annual financial report will be delisted from the stock exchange.
Source: Saigon Times