Vietnam Airlines reports net loss of over $154m in Q3

[ASEAN NOW News]

Vietnam Airlines aircraft seen at Tan Son Nhat International Airport in Ho Chi Minh City in January 2021. Photo by VnExpress/Quynh Tran

 

National flag carrier Vietnam Airlines recorded a net loss of over VND3.5 trillion ($154.3 million) in the third quarter, a sharp decrease compared to the first two quarters, reported VN Express.

 

According to a summary of consolidated financial statements for the third quarter, Vietnam Airlines earned net revenues of VND4.7 trillion, down 37.6 percent year-on-year.

 

The sale of goods dropped 20 percent year on year to VND7.7 trillion.

 

The airline reported a total gross loss in the sale of products and services of about VND3 trillion.

 

While its financial revenue more than quadrupled over the same period to more than VND560 billion, administrative expenses and costs related to the cost of products increased to more than VND347.5 billion and VND282.2 billion, respectively, resulting in the reported net loss.

 

The Q3 loss was less than the losses of VND4.9 trillion and VND4.4 trillion recorded in the first and second quarter, respectively.

 

Its loss in the first 9 months of the year has crossed VND12.1 trillion.

 

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

 

Vietnam Airlines said that it has proactively implemented drastic solutions in business operations to minimize the impacts of the Covid-19 pandemic, resulting in a significant drop in Q3 losses compared to the first two quarters.

As of September 25, the carrier increased its charter capital to VND8 trillion.

 

The carrier said business activities 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 more than VND67 trillion, up more than VND4.5 trillion over the beginning of the year.

 

The company has posted overdue debts of VND65.5 trillion compared to the beginning of the year, and more than VND1.4 trillion of equity, a decrease of VND4.6 trillion over the same period. Of this, short-term debt is about VND42.2 trillion, up more than VND9.7 trillion.

 

Join our 3 x a week Vietnam News, Travel and Expat information newsletter and keep up to date. https://aseannow.com/newsletter.php