Vietnam Airlines reported a loss of $170 million USD in the second quarter of this year, and announced a cumulative first half loss of 286 million USD.
In its consolidated financial statement for the second quarter of 2020, the carrier reported revenues of only $258 million USD, a 68% decline its revenues from the first quarter of this year.
The airline blames the decline in revenues on the Covid-19 pandemic, which had forced it to suspend all international flights as well as limit domestic flights during Vietnam’s social distance lockdown in the spring.
The airline reported that despite its efforts to significantly reduce sales, financial and management costs, the airline was unable to be profitable.
Previously, Vietnam Airline’s CEO, Duong Tri Thanh, estimated that its full-year revenues would drop by half from 2019 and would be around $2.16 billion USD, and he projected that the company’s loss in 2020 would be $560 million USD.
The airline has asked the government for urgent loans in order to remain in business and has requested $517 million USD in government funds. The airline has reported that it will run out of cash this month and has asked for government support by September 1st.