Vietnam Airlines Group, has reported estimated losses of $464 million USD for the first nine months of this year according to a report released in Hanoi on Tuesday by Tran Thanh Hien, the Chief Accountant of the Vietnam Airlines Department of Finance and Accounting.
The group’s third quarter revenue was 32% of the revenue made by the airline group compared with the same period last year, even though it was normally the peak quarter with the highest revenue of the year.
Hien said, “The aviation industry is in an extremely difficult time. Around the world, many airlines have to sell their assets, including key businesses such as catering and maintenance services. There are even companies selling their headquarters or renting them out to survive.”
The carrier had taken initiatives to solve the impacts of the COVID-19 pandemic, seeking financial solutions since the outbreak began and the cash flow declined rapidly, including cost cutting. According to the airline it has cut more than $230 million USD in costs, which has included cutting cut wages and reducing the number of staff. The group also worked actively with banks to restructure loans and delay the repayment periods.
Hien said of his report that, “We have also proposed shareholders, including the State which owns an 86% stake, to give us assistance. We are proactively seeking and taking advantage of every opportunity to increase revenue, such as promoting cargo transportation and charter flights to carry Vietnamese passengers back home and expert visitors, and selling old aircraft.”
Hien also denied reports that Vietnam Airlines was filing for bankruptcy. “This information is wrong. We are doing our best to overcome the crisis.”