Vietnam Airlines expects financial difficulties until the end-2023

[ASEAN NOW News]

Vietnam Airlines aircraft are seen at Noi Bai International Airport in Hanoi in September 2021. Photo by VnExpress/Ngoc Thanh

 

Vietnam Airlines expects financial difficulties to last until the end of 2023, amid the aftermath of the Covid-19 pandemic.

 

According to VN Express, the flag carrier targets to be profitable and turn around its negative equity this year, it said in a filing to the Ho Chi Minh Stock Exchange, on which its stock HVN is still restricted to trading in the afternoon due to loss reports.

 

The airline has recorded an accumulated loss of over VND24.5 trillion ($1.05 billion) as of March, and it wants to turn this situation around and become profitable by 2024 onward.

 

It had recently sold a 35 percent stake in Cambodia Angkor Air for $35 million and will sell the remaining stake (14 percent) this year.

 

It is set to issue more shares to pump up its capital in 2023 or 2024.

 

In September last year, it raised nearly VND8 trillion by share issuance. The airline said it has been benefiting from a strong rebound in domestic travel.

 

Last month, it operated nearly 12,000 flights and transported two million passengers, exceeding its plan by 42 percent.

 

International travel, however, has been affected by the Russia-Ukraine crisis and rising fuel prices, the airline said.

 

The Vietnamese government owns a more than 86 percent stake in Vietnam Airlines through two entities. Japan’s ANA Corporation owns a 5.6 percent stake.

 

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