By Viet Dung
HCMC – Vietnam Airlines saw combined revenue of over VND10.3 trillion in the last five years, but a loss of more than VND10.6 trillion between January and September this year, showed the national flag carrier's financial report in the third quarter of 2020 with losses similar to previous estimates.
Its combined revenue was some VND7.2 trillion in the period, down 70% year-on-year.
Its accumulative loss was VND3.2 trillion, while the after-tax loss was nearly VND4 trillion. The company racked up a loss of more than VND4 trillion in the second quarter although its revenue reached VND1.6 trillion.
The third quarter was earlier predicted as a fresh restart for the aviation sector as international flights resumed in June and July. However, the second outbreak of the Covid-19 pandemic beginning in the central beach city of Danang continued to drown local airlines in losses.
According to the Civil Aviation Authority of Vietnam, Vietnamese carriers operated nearly 160000 flights between January and September, down 36.5% year-on-year. Of this, Vietnam Airlines had 64400 flights, a 35.5% year-on-year decline.
During the period, the firm reported VND32.4 trillion in revenue, plunging by 57% year-on-year, with its total loss soaring to VND10.6 trillion. In the same period of 2019 it obtained a profit of VND2.5 trillion.
Earlier, the board of management of Vietnam Airlines had estimated a loss of around VND10.7 trillion for the nine months.
The carrier’s nine-month loss outpaced its combined revenue from 2015 to 2019 at more than VND10.3 trillion. To secure a cash flow, it strengthened asset liquidation and sales, debt recovery and took out more loans.
Its unexpected income reached over VND3.1 trillion during the period, while the sales of debt papers at other organizations fetched over VND3.6 trillion.
Besides this, Vietnam Airlines spent VND354 billion paying dividends to shareholders and took out loans worth VND18.7 trillion.
Given the hefty losses and liquidation risks, Vietnam Airlines has suggested borrowing VND12 trillion from the Government which now owns 86% of the carrier.
The firm may face payable debts hitting VND6 trillion at the end of this year. If Government aid is not forthcoming, it will continue taking out bank loans to maintain operations, said a representative of Vietnam Airlines.
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