Vietnam Airlines lost nearly 1 billion USD in 2 consecutive years

Airlines have faced many difficulties in recent years, but they have also started to receive positive signals. The opening of Vietnam to tourism is expected to help the revenue of the aviation industry recover.

Vietnam Airlines Corporation (HVN) has just announced its financial report for the fourth quarter of 2021 with a loss of nearly 1.12 trillion VND, thereby bringing the loss in 2021 to more than 13.3 trillion VND.

This is the 8th consecutive quarter of loss for Vietnam Airlines. Accumulated, Vietnam Airlines lost nearly 22 trillion VND (equivalent to about 1 billion USD), eroding most of its equity of more than 22.1 trillion VND.

Vietjet Aviation Joint Stock Company – Vietjet Air (VJC) of female billionaire Nguyen Thi Phuong Thao is also affected by the Covid pandemic. In the fourth quarter of 2021, Vietjet had a net loss of nearly 102 billion VND. However, for the whole year, VietJet still has a net profit of more than 100 billion VND, up 46% compared to the previous year, but mainly thanks to profit from financial activities.

Vietravel (VTR) also suffered a heavy loss of hundreds of billions as revenue from the tourism segment continued to be affected by the pandemic. Meanwhile, Vietravel’s airline, Vietravel Airlines, still has to pay for aircraft rental and maintenance during the flight stoppage due to distance…

Most airlines reported poor financial health.

Vietnam Airlines recorded total liabilities of nearly 62.6 trillion VND, nearly equal to total assets. HVN owes more than 1,070 billion VND to pay employees. Vietjet also has total liabilities twice as high as equity. VTR has a debt of 2 trillion VND.

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In fact, in difficulties, airlines still find their own solutions.

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In 2021, Vietnam Airlines sharply increased capital from VND 14,182 billion to VND 22,143 billion to improve financial health. Vietnam Airlines has resumed many regular international flights between Vietnam and other countries as early as 2022.

In 2021, Vietjet has carried out nearly 42,000 flights and transported over 5.4 million passengers across the network. For cargo transportation, Vietjet achieved high revenue of nearly VND 3 trillion, up 200% over the same period.

During the year, Vietjet continues to optimize operating costs by flight hours, reduce charter fees, and at the same time receive the Government’s support for the aviation industry, reducing landing costs by 50%, reducing 50% of environmental protection tax on jet fuel until the end of 2022, reducing port and ground service costs, airlines only pay the minimum.

Despite many difficulties, airlines have begun to receive positive signals from the end of 2021 thanks to the vaccination program that is widely deployed nationwide along with a new safety adaptation strategy of the economy. The opening of Vietnam to tourism will help the revenue of the aviation industry recover.

In 2022, along with the complete opening of international routes, especially the development of tourist resorts and resorts across the country, Vietnam’s aviation industry is assessed to recover and develop strongly from 2022 and subsequent years.

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@ Vietnamnet

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