Vietnam Airlines, ACV suffer heavy losses due to COVID-19
The COVID-19 pandemic has severely dragged down revenues of the Vietnam Airlines Corporation (Vietnam Airlines) and the Airports Corporation of Vietnam (ACV) in the second quarter of this year.
The Vietnam Airlines Corporation (Vietnam Airlines) suffers losses of 4.03 trillion VND (172.72 million USD) in the second quarter of 2020. (Photo: VNA)
Hanoi (VNA) – The COVID-19 pandemic hasseverely dragged down revenues of the Vietnam Airlines Corporation (Vietnam Airlines) and the AirportsCorporation of Vietnam (ACV) in the second quarter of this year.
Vietnam Airlines reported 6 trillion VND (257.1 millionUSD) in second-quarter revenue, down nearly 70 percent from the previousquarter, as a result of a month-long social distancing order in April and theongoing suspension of international flights.
The corporation suffered quarterlylosses of 4.03 trillion VND (172.72 million USD), raising the total losses inthe first half of the year to more than 6.64 trillion VND.
In mid-July, the State-run firm estimated its revenuewould halve to around 50 trillion VND and losses would mount to 13trillion VND this year.
VietnamAirlines is seeking an urgent bailout of 12 trillion VND from the government to help it overcomedifficulties.
By the end of the second quarter, its asset totalled66.69 trillion VND, a decline of 12.7 percent from the beginning of the yearand its equity shrunk by more than 38 percent to close to 11.43trillion VND.
Meanwhile, ACV has recorded post-tax losses of over 365 billion VND from April to June as its revenues plunged 76.6 percent from the same period last yearto over 1.04 trillion VND.
A year earlier, the company enjoyed about 1.7 trillionVND in profit.
The second-quarter losses have been offset by 1.55trillion VND in first-quarter post-tax profit before thecoronavirus hit the aviation industry. In the first half of 2020, the airportoperator posted more than 1.19 trillion VND in post-tax profit.
ACV projected that the number of air passengers wouldreduce by 41 percent year-on-year to 69.2 million in 2020 while the volume of cargoes going through 21 airports across Vietnam would fall 13 percent to 1.34million tonnes./.
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The Vietnam Airlines Corporation (Vietnam Airlines) suffers losses of 4.03 trillion VND (172.72 million USD) in the second quarter of 2020. (Photo: VNA)
