The national flag carrier Vietnam Airlines has 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) – The national flag carrier Vietnam Airlines has recordeda net loss of 3.5 trillion VND (155 million USD) in the third quarter of thisyear, a sharp decrease compared to nearly 4.9 trillion VND and 4.4 trillion VNDreported in the previous quarters.
Theloss of its parent company is estimated at over 3.3 trillion VND and the totalgross loss of the airline is over 3 trillion VND.
In its consolidated financial statement for the third quarter, Vietnam Airlinessaid that both its revenue and after-tax profit suffered a big drop against last year’sfigures,
Accordingto Vietnam Airlines, the total revenue and other incomes in the third quarter ofthe parent company were down by 2.6 billion VND, representing a year-on-yeardecrease of 41.3 percent. The corporation attributed it to a 51.9 percent declinein revenue from services in the period.
The carrier said thefourth wave of COVID-19 infections, which took place during the peak time ofsummer, has affected the corporation’s business results.
In addition to thedecrease in profits of the parent company, the profits ofsubsidiaries providing aviation services like Vietnam Airlines EngineeringCompany (VAECO) and Noi Bai Airport Services Company (NASCO), also declinedsharply, it said.
Todeal with the situation, Vietnam Airlines has proactively adopted drastic solutionsin business operations to minimise the impacts of the COVID-19 pandemic.
Accordingly,it has taken advantage of the support of partners and suppliers to maintainoperations, scale down production while cutting costs, resultingin a significant drop in the Q3 losses compared to the first twoquarters.
Notably,on September 25, the carrier increased its charter capital to nearly 8 trillionVND to help improve the financial situation.
VietnamAirlines said it is expected that with the resumption of regular domestic flights from October, business activities willgradually stabilised and it is ready for the recovery phase in the future./.
