Vietnam Airlines has reported a loss of $430 million in 2022 with the overall expenses to be 3.6 times higher than the same time in 2021. The airline has attributed this huge loss to rising prices of fuel and foreign exchange volatility.
Towards the end of 2022, the airline had $5.2 million in short-term assets with $1.45 million in cash liquidity. The airline’ short-term debt was $2.26 bn including short-term financial lease debt at $750 million. These figures point out growing short-term liquidity pressure on the airline.
Vietnam Airlines served more than 18 million passengers in 2022, reaching almost 70% of pre-pandemic revenues compared to 2019
The airline has incurred loss of nearly $1bn during the two years of COVID-19 pandemic.
Going ahead, the airline has warned that its operations will be affected by the Russia-Ukraine conflict, inflation, rising fuel prices, and the risk of an economic recession. But as a response to this, the airline will focus on narrowing its losses by corporate restructuring, improving operational efficiency, and increasing labor productivity.
The airline has scheduled an extra 108 flights, adding 20,000 seats across its network during the peak travel season of Chinese New Year.