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

Khanh Vu Friday | 02/14/2020 09:16

Coronavirus costs Vietnam Airlines $10.8 million revenue a week. Photo: VietnamFinance

Vietnam Airlines said on Thursday it was losing up to VND250 billion ($10.8 million) per week in revenue due to travel curbs resulting from the coronavirus.

The country’s flag carrier is reducing operations and trying to cut costs to ride out the impact of the epidemic and “achieve a positive financial result” for this year, it said in an emailed statement.

It has suspended all flights to and from mainland China since the end of January, directly affecting 70,000 visitors per month between the two countries, it said.

“The epidemic has significantly reduced the travel demand of domestic and international tourists in the Vietnam network,” the company said, adding that its passengers on domestic routes have also fallen by 20%-30% over the past two weeks.

China, where the coronavirus epidemic has killed more than 1,300 people, is Vietnam’s largest source of foreign tourists and largest trading partner. Chinese tourists accounted for one-third of the 18 million foreign tourists visiting Vietnam last year.

Vietnam Airlines’ pre-tax profit rose 1.72% last year to $145.4 million.

The government said on Wednesday the virus has cost Vietnamese airlines about 10 trillion dong so far in lost revenues.

► Coronavirus costs Vietnam’s aviation sector at least $418 million

► Vietnam trims 2020 economic growth forecast to around 6% as coronavirus risks

Source: Reuters

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