DALLAS – Hanoi-based Vietnam Airlines (VN) has announced a loss of VND10.09tr (US$430.3m) for the 2022 financial year. The carrier has blamed the sizeable loss on rising fuel prices and foreign exchange rate volatility. Indeed, the airline said that operating costs for 2022 were over three times higher than in 2021. In total, VN’s losses now stand at VND34.2tr. (US$1.4bn).
However, revenues had grown to VND71tr (US$3bn) during the year, reaching 70% of pre-pandemic levels compared to 2019.
In 2022, VN carried over 18 million passengers, a marked improvement from the previous two years. Indeed, in 2021, VN carried just 6.1 million passengers.
The airline remains optimistic about the year ahead. Still, it warns that the ongoing Russian conflict in Ukraine, rising inflation, fuel prices and the threat of a global economic downturn could all impact its outlook.
Now the carrier has said that moving forward, it will focus on its corporate restructuring, driving down costs to improve operations efficiencies and boost labor productivity.
VN can trace its history back to January 1956 by the North Vietnamese government. Known initially as Vietnam Civil Aviation, the airline’s operations were limited during the Vietnam War. However, operations expanded during the 1990s, with VN becoming the country’s flag carrier. In 1994 the US lifted its trade embargo on the country, and VN could purchase Western-built airframes.
In recent years, VN has grown to become one of the regions leading airlines. It operates a modern fleet of Airbus A320 family jets, Airbus A350-900s and Boeing 787-9 and -10s.
Featured Image: Luca Flores/Airways.