Vietjet Air reports VND2trn in losses
  • | | August 04, 2020 07:01 AM
The budget airline Vietjet Air has reported losses of over VND2trn (USD86m) in the first half of 2020.


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The numbers were announced in the business results for the second quarter of Vietjet Air which was badly affected by the Covid-19.

Vietjet expanded its domestic network to 52 routes and 14,000 flights, serving over two million passengers in the second quarter. By the end of the quarter, Vietjet Air's revenue reached VND1.9trn (USD82m), decreased by 54% compared to the same period last year. The accumulated loss in the first six months was VND2.1trn.

Vietjet Air had searched for business partners and have transferred property and other financial investments so that the post-tax profit reached VND1trn (USD43m) to offset the losses in the aviation department. In May, they were able to buy and store fuel while there were low prices and saved 25% of the usual operational costs. They also negotiated with other service providers for discounts.

Vietjet Air's property was valued at nearly VND48.4trn (USD2bn) and its equity reached VND17.4trn. The liquidity index remains at 1.4. They continued to use long-term loans to overcome their current different.

In April, Vietjet launched cargo and charter flight services. They are the first airline that have been allowed to fly cargo in aircraft cabins.

In the business results for the first quarter, Vietjet Air announced that they suffered a loss of VND1trn after the number of passengers dropped by 22% compared to the same period last year due to Covid-19.

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