Vietnam Airlines has reported its full-year losses for 2020 and reports a loss of $483 million USD, lower than the $520 million USD loss that had been projected. The company said that overall revenues declined by almost 59% as the number of flights fell by over 27%.
The losses in 2020, and additional losses expected this year were due to the global COVID-19 pandemic and the government’s response, which has included limiting almost all inbound and outbound international airline flights, as well as significant restrictions on domestic flights.
In response to Vietnam Airlines massive losses, the government has approved the State Bank of Vietnam (SBV) providing a loan to the airline of up to $175 million USD at zero interest. In addition, the airline has also received permission to increase its capital by issuing shares in the company to existing shareholders.