Vietjet Air reports 1Q loss at $42mln on coronavirus, beating expectation

Xuan Thinh Monday | 05/04/2020 15:13

In the first three months of 2020, Vietjet Air operates 29,401 flights, transporting nearly 4.5 million passengers. Photo: CafeF

Vietnam’s budget carrier said it recorded VND989 billion ($42 million) loss in the first quarter of this year due to coronavirus outbreak. However, the loss was lower than expected.

Transport revenue fell by 30% to VND7,222 billion ($308.5 million) due to travel restriction to limit the spread of coronavirus. This is a bright result among the aviation industry which has been badly hit by the pandemic.  

Vietjet said with the achievement it was ready to resume operation though it reported a quarterly loss for the first time since it got approval to list shares on exchange in 2017.

In the first three months of 2020, the carrier operated 29,401 flights, transporting nearly 4.5 million passengers, down 22% over the same period last year.

Vietjet has implemented a series of drastic measures such as expanding cargo transportation services, developing SkyBoss products and services. It has also implemented measures to reduce and optimize operating costs on average by 35% - 40% over the same period last year.

It has successfully negotiated with its lending partners to extend the payables from 3-12 months, which will help Vietjet have financial resources to focus on recovering business that was hit by the pandemic.

In 2019, Vietjet reported transport revenue at VND41 trillion ($1.75 billion), pretax profit reached VND3.9 trillion ($166.6 million), up 21.4%, and 29.3% respectively.

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