In the first quarter of this year, Vietnam Airlines was among Vietnamese businesses suffering the most from the COVID-19 pandemic, reporting a drop of 26.3 percent to VND18.8 trillion (US$808.4 million) in net revenue in the January-March period and an after-tax loss of VND2.6 trillion.
VNA suspended all international routes. It was only operating domestic routes at a minimum level while increasing operation of cargo flights to facilitate trade and increase revenue. It has also asked for Government support in terms of a loan package worth VND12 trillion to help ensure the corporation’s solvency.
In the second quarter, Vietnam Airlines completely restored domestic flights. Even in May and June, the group also opened a total of 13 domestic routes. In July, Vietnam Airlines plans to open five more routes, bringing the total number of domestic routes of the airline to 57.
International passenger transport activities of Vietnam have not been resumed due to concerns of COVID-19 re-entering the country.
Vietnam Airlines recently announced its restructuring schedule for low-cost airline Jetstar Pacific Airlines. The carrier was renamed as Pacific Airlines with a new logo and brand identity.
Major shareholder Qantas Airways is willing to divest 30 percent of its capital from Pacific Airlines so that Vietnam Airlines will hold a majority share and complete restructuring.