Airlines have faced many problems in recent years, but are also starting to receive positive signals. Vietnam’s opening up to tourism is expected to help the airline industry recover revenues.
Vietnam Airlines Corporation (HVN) just released its financial report for the fourth quarter of 2021 showing a loss of nearly 1.12 trillion VND, bringing its loss to more than 13.3 trillion VND in 2021.
This is the 8th consecutive quarter of loss for Vietnam Airlines. Added up, Vietnam Airlines lost nearly 22 trillion VND (equivalent to approximately USD 1 billion), eroding most of its net worth of more than 22.1 trillion VND.
Vietjet Aviation Joint Stock Company – Vietjet Air (VJC) of female billionaire Nguyen Thi Phuong Thao is also affected by the Covid pandemic. In the fourth quarter of 2021, Vietjet had a net loss of nearly 102 billion VND. However, for the full year, VietJet still has a net profit of more than 100 billion VND, up 46% from the previous year, but mainly thanks to the profit from financial activities.
Vietravel (VTR) also suffered a heavy loss of hundreds of billions as tourism segment revenues continued to be hit by the pandemic. Meanwhile, Vietravel’s airline, Vietravel Airlines, still has to pay for the rental and maintenance of aircraft during the flight shutdown due to the distance…
Most airlines reported poor financial health.
Vietnam Airlines posted total liabilities of nearly VND 62.6 trillion, nearly equal to total assets. HVN owes more than 1,070 billion VND to pay employees. Vietjet also has total liabilities that are twice as high as shareholders’ equity. VTR is in debt of 2 trillion VND.
In fact, airlines in trouble are still finding their own solutions.
In 2021, Vietnam Airlines significantly increased its capital from VND 14,182 billion to VND 22,143 billion to improve financial health. Vietnam Airlines has resumed many regular international flights between Vietnam and other countries as early as 2022.
In 2021, Vietjet operated nearly 42,000 flights and transported more than 5.4 million passengers over the network. For freight transportation, Vietjet achieved a high turnover of almost VND 3 trillion, an increase of 200% over the same period.
During the year, Vietjet continues to optimize operating costs based on flying hours, reduce charter fees while receiving government support for the aviation industry, by reducing landing costs by 50% and reducing 50% of the environmental protection tax on aviation fuel. until the end of 2022, reducing costs for port and ground services, airlines pay only the minimum.
Despite many difficulties, airlines will start to receive positive signals from the end of 2021 thanks to the vaccination program that is being widely deployed nationwide, along with a new safety adaptation strategy of the economy. Vietnam’s opening up to tourism will help recover the airline industry’s revenues.
In 2022, along with the full opening of international routes, especially the development of tourist resorts and resorts across the country, Vietnam’s aviation industry is expected to recover and develop strongly from 2022 and subsequent years.
@ vietnamnet
