BUSINESS RESULTS FOR THE FIRST 9 MONTHS OF 2020 OF VIETNAM AVIATION CORPORATION

In the first 9 months of 2020, Vietnam Airlines (Vietnam Airlines, HOSE: HVN) has maintained its leading position in the domestic aviation industry in the context of the economy. and the market had many changes due to the Covid-19 pandemic.

Right from the outbreak of the epidemic, Vietnam Airlines has proactively applied many powerful solutions to cope with the effects of the pandemic, maintain production and business, such as: Reorganizing production in accordance with the affected market size. narrow; saving, cutting costs thoroughly; labor restructuring and reorganization; payment schedule extension; stop implementing investment portfolios that are not urgent; proactively seek and take advantage of every opportunity to increase revenue such as promoting cargo transportation, charter flights to return passengers and expert visitors; liquidation of old aircraft fleets, ...

These solutions have contributed to helping Vietnam Airlines to have a total consolidated revenue in the first 9 months of the year estimated at 23,948 billion VND. However, the expected consolidated loss is 10,750 billion dong, in which the parent company's loss is over 8,700 billion dong.

With the influence of the two outbreaks in Vietnam, Vietnam Airlines Group (including Vietnam Airlines, Pacific Airlines and VASCO) still affirmed its leading position in the domestic market with 51.7% market share in passenger transportation. In the first 9 months of the year, Vietnam Airlines Group has absolutely safe 46,700 flights, transporting nearly 11.9 million passengers and 146,000 tons of goods. Although the third quarter of 2020 recorded a positive growth in passenger volume compared to the second quarter, the domestic airlines massively increased the load, and implemented many stimulus programs to promote tourism. Calendar according to the major goals of the Government and the international aviation market has not been re-exploited, so the direct efficiency for Vietnam Airlines Group is still at a very limited level.

In an effort to find opportunities to improve production and business efficiency, in addition to increasing freight transport, Vietnam Airlines opened 22 new domestic routes during the time when the epidemic was well controlled and responded to the program. to stimulate national tourism demand in the second quarter. Currently, the airline is exploiting more than 60 domestic routes with an average of 300 flights per day. Domestic passenger volume at times exceeded 12% over the same period, marking an impressive recovery since the second Covid-19 outbreak in Vietnam.

In addition to the mission of production and business, Vietnam Airlines Group has been actively accompanying the country in epidemic prevention and control through activities such as transporting citizens back home and transporting goods. Over the past 8 months, Vietnam Airlines and Pacific Airlines have made more than 100 return flights, safely bringing more than 30,800 Vietnamese citizens from nearly 30 countries home. More than 2,600 cargo flights, including tons of free-of-charge medical equipment, have been transported to all parts of Vietnam and many countries, contributing to ensuring trade and supporting prevention. , anti-epidemic on a global scale.

Entering the fourth quarter of 2020, the passenger transport activities of Vietnam Airlines are recording a positive change in the context of rapid and effective control of the epidemic by the Government, the recovery of the domestic market and some Regular international routes are reopened under strict control according to epidemic prevention and control regulations.

In the last months of the year, Vietnam Airlines Group will continue to closely monitor disease developments and closely follow the market to have an appropriate plan to restore the flight network, ensuring the highest priority is epidemic prevention and response. good travel needs of passengers. Facing the difficult financial situation, efforts to tighten costs to maintain operations will continue to be deployed by the Corporation through labor restructuring; thoroughly save and reduce costs; negotiating price reduction, debt rescheduling; using the short-term loan limit and proposing solutions to support State shareholders.