Vietnam Airlines’ $928 million loss in 2021 nears charter capital

Vietnam Airlines aircraft are seen at Noi Bai International Airport in Hanoi in October 2021. Photo by VnExpress/Giang Huy

The accumulated loss of national flag carrier Vietnam Airlines climbed to VND21.98 trillion ($928.39 million) last year, the same as its charter capital.

According to VN Express, the airline was hit hard by the Covid-19 pandemic that saw borders closed and commercial flights suspended for two years.

It posted a loss of VND13.02 trillion last year alone, with revenue dropping 31 percent year-on-year to VND28.09 trillion.

The airline increased its charter capital by 56 percent to VND22.14 trillion last year by issuing eight hundred million shares, with the State Capital Investment Corporation (SCIC) contributing an additional VND6.89 trillion.

The Commission for Management of State Capital at Enterprises (CMSC) now holds a 55.2 percent stake in the flag carrier, the SCIC 31.14 percent, and Japan’s ANA airline 5.62 percent.

The airline has been increasing the number of flights it operates since the beginning of this year as the government began lifting restrictions based on rising vaccination rates.

It operated 7,314 flights last month, up 21 percent year-on-year.

The airline has proposed that the government raises the price cap for domestic travel from April 1 and add a fuel surcharge for local routes as fuel prices have soared in recent months.

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