The new epidemic broke the recovery momentum of Vietnam Airlines

The new epidemic broke the recovery momentum of Vietnam Airlines 1
The new epidemic broke the recovery momentum of Vietnam Airlines 1

At the annual meeting this morning (August 10), Vietnam Airlines CEO Duong Tri Thanh shared that due to good control of the epidemic situation, the domestic market has helped the airline recover.

Mr. Duong Tri Thanh – CEO of Vietnam Airlines shared with shareholders at the 2020 annual meeting on the morning of August 10.

In June and July, Vietnam Airlines continuously opened 18 new routes, using all excess pilots and flight attendants when not flying internationally.

In the third week of July, the airline operated more than 500 domestic flights, an increase of 40% over the same period.

Speaking to shareholders, chief accountant Tran Thanh Hien said that the company is currently maintaining cash flow management thanks to more positive revenue in June and July of about 1,700 billion VND.

However, recently, Vietnam Airlines’ operating output decreased sharply after the second wave of the epidemic broke out.

`The second wave of the epidemic will not extinguish it, but will break the recovery momentum of Vietnam Airlines,` Mr. Thanh said, adding that the airline expects to be able to recover by 2022, but for now it must be cautious and push this milestone further.

In its latest report in July, the International Air Transport Association (IATA) also estimated that the market would recover in 2024, lasting one year longer than the previous forecast.

According to Mr. Thanh, in the last 5 months of the year, the domestic market may only be 70% compared to the same period last year.

Mr. Tran Thanh Hien also said that Vietnam Airlines is expected to run out of cash flow at the end of this month.

Regarding the plan to ask the Government – as the owner for support, Mr. Duong Tri Thanh said that the final decision will be made in the near future.

According to Chairman Pham Ngoc Minh, Vietnam Airlines is completing procedures to submit to higher levels the Government the final plan – to borrow 4,000 billion VND and increase charter capital to 8,000 billion VND.

In the first half of this year, Vietnam Airlines had a negative consolidated profit of more than 6,600 billion VND.

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