Vietnam Airlines has announced a fourth-quarter after-tax loss of USD 75 million. Meanwhile, full-year losses for the 2022 financial year stretch to USD 430.3 million.
This reported loss comes down to various problems the airline experienced during the year. Notably, increased fuel prices only raise operating costs. In addition, the airline blamed the conflict between Russia and Ukraine that negatively impacted the business.
2022 was a strong year in terms of passengers carried, it grew from 6 million to 18 million, and revenue increased. However, continued external factors that represent the industry’s current climate highlight how challenging it can be to break even.
Vietnam Airlines remains hopeful that 2023 will be a better year as they look to stabilise their business and increase recovery/rebuilding processes. Included in this is finding ways to drop operating costs, whether that means reducing aircraft or operations for the time being.
Restructuring is something that has taken place at several airlines globally. While not always guaranteed to have positive results, it offers the airline in question a chance to re-evaluate what’s necessary.
Per Cirium data, Vietnam Airlines has 88 aircraft currently in service, with 10 on storage. However, the airline only has 3 aircraft on order. Representing 3% of its total fleet.
