Vietnam Airlines incurs accumulated loss of $1.45 bln

The national flag carrier Vietnam Airlines reported an accumulated loss of over VND34 trillion ($1.45 billion) by the end of 2022.

Vietnam Airlines, listed on the Ho Chi Minh Stock Exchange (HoSE) as HVN, posted Q4/2022 revenue of VND19.5 trillion ($381.6 million), a 105% increase year-on-year, according to its financial report.

However, as operation costs surged due to skyrocketing fuel prices and exchange rates, the carrier's gross loss hit nearly VND830 billion ($35.4 million). Previously, in Q3/2022, the carrier recorded gross profit for the first time since the pandemic broke out in 2020.

For the whole 2022, the national flag carrier suffered net loss of VND10.37 trillion ($442.2 million) although its revenue hit nearly VND71 trillion ($3.03 billion), 2.5 times higher than that of 2021 and equivalent to over 70% of the pre-pandemic level in 2019.

However, its 2022 loss was VND3 trillion ($127.9 million) lower than that in 2021 and lower than the plan set in the middle of the year.

By December 31, 2022, Vietnam Airlines had recorded equity of negative VND10.2 trillion ($425 million).

As the international travel market is improving, Vietnam Airlines hopes to achieve more positive results this year. The corporation has submitted its restructuring scheme for the 2021-2025 period to shareholders and competent authorities for approval.

The carrier said it would continue to take synchronous solutions to fix consolidated loss and negative equity problems. It has also prepared necessary conditions for implementing a plan to issue shares to increase equity once approved.

In 2022, the airline transported more than 18 million passengers, equivalent to 107.8% of the plan, and 211,900 tons of goods, its general director Le Hong Ha told the company's year-end conference.

On the HoSE, HVN shares closed the Thursday session at VND14,750 ($0.63).

The number of international tourists to Vietnam fell sharply in 2022 to only 3.5 million, hitting 70% of the year’s five-million target, according to the Vietnam National Administration of Tourism.