Vietnam Airlines has sent a document to the Ho Chi Minh Stock Exchange explaining the measures and the roadmap to remove it from the list of stocks trading under HOSE supervision.
Accordingly, the airline said that its production and business activities were severely affected by the impact of the COVID-19 pandemic in the years 2020, 2021, and the first quarter of 2022. Vietnam Airlines was forced to hibernate its commercial passenger flights from March 2020 and will only return to service on March 15 of this year.
In a statement submitted to the stock exchange, Vietnam Airlines said it suffered a loss in its consolidated business results, while the consolidated equity as of March 31 was negative.
The company has built short-term and long-term solutions to minimize damage, improve production and business results, and supplement capital and cash flow for businesses.
In the period of 2023 – 2025, Vietnam Airlines will continue to implement solutions to improve production and business results, supplement equity to overcome the crisis, and gradually recover and develop.
The airline also proposed solutions to quickly recover, improve business operations, and minimize damage in the transportation business because the market from 2022 to 2023 is still sluggish. Vietnam Airlines will create a foundation to be profitable again by 2025.
The airline is embarking on restructuring its assets and financial portfolio to boost earnings and cash flow. As part of the restructuring plan, Vietnam Airlines will sell or lease old aircraft and apply the form of divestment and capital transfer for some financial investment portfolios. According to a report by the Vietnam News Agency, the mentioned solutions will be implemented until the end of 2024.
In the first quarter of 2022, Vietnam Airlines said it achieved net revenue of 11,620 billion dong, up 55% over the same period last year. However, because COGS (cost of goods sold) is higher than revenue, the company has a gross loss of VND 1,594 billion and an accumulated loss of VND 24,575 billion.