Vietnam Airlines reports Q2 after-tax loss at nearly $174mln on Covid-19 pandemic

Khanh Minh Friday | 07/31/2020 19:34


Pandemic has taken a heavy tolls on Vietnam national flagged carrier Vietnam Airlines, which suffered VND4,030 billion ($173.8 million) loss in second quarter, according to the company’s consolidated earning report.

While short-term debt increased sharply, net revenue in the quarter fell 75% to VND5,995 billion ($258 million), while revenue of the first quarter in 2019 was VND24,139 billion ($1 billion).

In the first 6 months, the carrier saw a loss of VND6,642 billion ($285.8 million), much lower than the estimated loss of VND7,500 billion ($322.7 million) made days ago. Revenue also dropped sharply in the six-month period to VND24,808 billion ($1.07 billion), down 50% from a year earlier.

The modest revenue did not offset the direct expenses, which brought Vietnam Airlines a net loss of VND6,534 billion ($281 million).

Covid-19 pandemic caused the passenger revenue to decrease by 57.7% while international passenger revenue dropped 96.6%, Vietnam Airlines said.

One of the most concerned issues of the carrier is the cash flow which made it calling support from the Government.

Net cash flow in 6 months was minus VND356 billion ($15 million), of which net cash flow from operating activities was negative VND5,400 billion ($232.4 million).

As of end-June, Vietnam Airlines’ short-term debt increased from VND6,500 billion ($280 million) to VND11,100 billion ($478 million).

► Pandemic causes Q1 loss of $110 million, says Vietnam Airlines

► Vietnam Airlines revenue slips $10.8 million a week amid virus fears

► Vietnam Airlines seeks $518mln support from government

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