National carrier Vietnam Airlines remained in the red in the first quarter of this year, with losses of nearly US$113 million, despite its revenue rising to a two-year high.
The airline posted a loss of VND2.621 trillion ($112.9 million) over the first three months of 2022, according to its Q1 consolidated financial statements issued on Friday.
The loss was recorded even though the flag carrier logged revenue of more than VND11.6 trillion ($500 million) in the period, up 55 percent year on year, the highest performance since the second quarter of 2020, when COVID-19 began to severely affect Vietnam's aviation industry.
The impressive revenue failed to cover the total cost that was higher than expected, leading to the firm's ninth consecutive quarterly loss, the carrier said.
Vietnam Airlines' fuel expense in the quarter was VND465 billion ($20 million) more than projected given rising world oil prices, VnExpress cited the company as saying.
The Q1 result has brought the airline's accumulated deficit to about VND24.5 trillion ($1.05 billion), some VND2.16 trillion ($93 million) higher than its charter capital.
The carrier said its operating results mirrored the prolonged serious impact of the COVID-19 pandemic on the aviation industry despite the relatively quick recovery of the domestic market.
Meanwhile, the international airline market was almost frozen in the first quarter of 2022, while the ongoing Russia – Ukraine armed conflict, which broke out on February 24, has driven up fuel prices sharply, Vietnam Airlines explained.
With heavy losses, the airline, with its securities code HVN, is facing a risk of being delisted from the Ho Chi Minh City Stock Exchange according to current regulations.
In its recent statement to the State Securities Commission, the carrier said that it has adopted drastic solutions for minimizing the pandemic impacts, along with taking advantage of support from its partners, to maintain and develop operations.
"Business activities have gradually stabilized and we are making necessary steps for our recovery and development phase in the coming time," the airline stated.
- Back to black: Cathay says it has ended two years of losses
- Business Breakfast LIVE: Thomas Cook mulls sale of airline business amid fears for firm's future
- Business review 2018: House prices soar, Ryanair and bank shares fall but food exports surge
- Gatwick drone chaos costs Easyjet £15m as it warns of 2019 revenue drop
- Trade, Tory splits and electoral defeat – is history about to repeat itself?
- State papers 1988: £660k grant for Apple expansion ‘unwarranted’
- State papers 1988: ‘Shoot-to-kill policy’ threatened cross-border relations
- The story of the Munich Air Disaster when 23, including eight of Manchester United's Busby Babes, lost their lives
- EasyJet blasts Gatwick drone chaos as ‘wake-up call’ after £15m hit
- Northstander: Our problems go beyond the capabilities of any manager. What a shambles!
Vietnam Airlines suffers $113mn Q1 loss despite revenue surge have 461 words, post on tuoitrenews.vn at May 22, 2022. This is cached page on Talk Vietnam. If you want remove this page, please contact us.