Vietnam private carrier Bamboo Airways reports $748 mln loss in 2022

Vietnamese private carrier Bamboo Airways reported a loss of VND17.6 trillion ($748 million) in 2022, about $84 million higher than the combined figure of Vietnam Airlines and Vietjet Air.

The figures will be officially released at the airline's annual general meeting of shareholders (AGM) on June 21.

Last year, national flag carrier Vietnam Airlines posted a loss of VND12.97 trillion ($551.5 million), while private budget carrier Vietjet Air recorded a loss of about VND2.65 trillion ($112.6 million).

In 2022, Bamboo's revenue increased by nearly 3.3 times compared to 2021, reaching VND11.73 trillion ($498.96 million). Despite this improvement, Bamboo Airways has not been able to post a gross profit. The carrier said it suffered a gross loss due to difficulties in the Northeast Asian market and the Russia-Ukraine conflict, which caused jet fuel prices to skyrocket.

Bamboo Airways currently owns a fleet of 30 aircraft, while Vietnam Airlines has over 110 planes, and Vietjet has over 80.

At the end of December 2022, Bamboo Airways' liabilities had stood at about VND18.8 trillion ($799.6 million), up over VND8.7 trillion ($370 million) compared to the beginning of 2022. Of which, short-term debt accounted for more than VND17.3 trillion ($735.77 million). Equity stayed at negative VND835 billion ($35.5 million), while at the beginning of the year it was VND16.78 trillion ($713.78 million).

This year, Bamboo Airways has set a double-digit growth plan, with about 15-20% depending on market developments. To regain momentum, the airline is considering scenarios to enlarge its fleet and network, as well as improve operational efficiency.

The airline will continue to improve its operating frequency and open new routes, focusing on target markets like Europe, Northeast Asia, Southeast Asia and Australia. At the same time, it will seek government permission to expand its fleet to over 30 aircraft.

Bamboo Airways on Wednesday said it had accepted the resignations of all board members Nguyen Ngoc Trong, Doan Huu Doan, Le Ba Nguyen, Le Thai Sam, and Nguyen Manh Quan.

In order to ensure the continuous operation of the board of directors, Bamboo Airways will ask shareholders to approve the resignations of the five members at the AGM on June 21. After that, it will elect a new board, term 2023-2028, with seven members.

Bamboo Airways currently has a charter capital of VND18.5 trillion ($789 million), equivalent to 1.85 billion shares.

At a Bamboo Airways extraordinary shareholder meeting on April 10, the airline's plan to increase its charter capital was rejected by a 56.42% majority. The firm had presented plans to issue 996.2 million shares in 2023 in order to raise nearly VND10 trillion ($425.55 million) and increase its charter capital to nearly VND28.07 trillion ($1.2 billion).