Budget carrier Vietjet sees 2020 profit to drop nearly 100% to $4.3mln on pandemic
Vietjet expects $4.3 million profit in 2020. Photo courtesy of carrier.
The Vietnamese low cost carrier (HoSE: VJC) seeks shareholders’ approval to lower 2020 revenue target by 29 percent to VND36 trillion ($1.54 billion), when its passenger number is expected to fall by 19 percent to over 20 million.
Vietjet's leaders said that these are the best targets the company could achieve in the current situation. All of local airlines had to suspend flights in March and April to contain the coronavirus.
National flag carrier Vietnam Airlines sees VND16 trillion ($685 million) loss this year while its low-cost Jetstar Pacific is expected to face a loss of VND2 trillion ($86 million). Bamboo Airways posted a loss of VND1.5 trillion ($64 million) in the first quarter, according to data compiled by VnExpress.
In the first three months of this year, Vietjet reported VND989 billion ($42 million) loss, which it commented as positive, because the loss was in lower than expected.
In the quarter, the air carrier operated 29,401 flights, carrying nearly 4.5 million passengers, down 22 percent from a year earlier.