Vietnam life vietnam airlines suffers 113mn q1 loss despite revenue surge

Illustrative image (Source: VNA) Hanoi (VNS/VNA) -  Vietnamese airlines are suffering losses amounting to hundreds of billions of dong each month due to a surge in fuel prices, according to the director of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang . At a conference of the transport ministry reviewing its work in the first half of the year earlier this week, Thang said that fuel costs accounted for 40-50% of operation costs, and revenue increases were insufficient to compensate for high fuel prices. He said domestic aviation transport had recovered with higher growth than in the pre-pandemic period. However, Vietnamese carriers had not fully escaped difficulties due to the slow recovery of the international market. It was estimated that domestic carriers suffered a loss of nearly 100 billion VND per month on skyrocketing jet fuel prices. Tran Thanh Hien, chief accountant at Vietnam Airlines, said Jet A1 prices averaged 72 USD per barrel in … [Read more...] about Airlines suffer losses due to rising fuel prices

Vietnamese airlines are suffering losses amounting to hundreds of billions of VND each month due to a surge in fuel prices, according to director of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang. Illustrative image (Photo: VNA) At a conference of the Transport Ministry reviewing its work in the first half of the year on June 28, Thang said as fuel costs account for 40-50% of operation costs, revenues increases are not sufficient to compensate for high fuel prices. He said domestic aviation transport has fully recovered with higher growth than in the pre-pandemic period. However, Vietnamese carriers have not fully escaped difficulties due to the slow recovery of the international market. It was reported at the conference that in the first half of the year, the number of international air passengers has increased monthly, from 103,500 in January to 127,000 in February, 224,600 in March, 445,700 in April, 650,000 in May and an … [Read more...] about Domestic air transport sees fast recovery, airlines suffer loss due to rising fuel prices

Many Vietnamese airlines have proposed that the ceiling prices of domestic air tickets be further increased or removed as they have suffered heavy losses due to wildly soaring fuel costs. Even though air tickets have been rising, even higher than before the COVID-19 pandemic, carriers argued that they have to make up for relentlessly rising fuel expenses. Round-trip airfares of economy class for the Hanoi - Ho Chi Minh City route are fluctuating around VND3-5 million (US$129-214) per ticket and those for business class are VND8-17 million ($343-729), an increase of 20-50 percent compared to periods with passenger shortages due to the COVID-19 pandemic. Airfares to famous tourist destinations, such as Da Nang and Phu Quoc, have even changed hourly, and customers can hardly find cheap tickets even though for early morning or late-night flights. Many customers commented that many airlines might have taken unfair advantage of higher fuel prices, triggered by rising world oil … [Read more...] about Vietnamese airlines want domestic airfare caps raised, even removed, amid fuel cost hikes

As more Vietnamese are seeking air travel services this summer, air ticket prices have increased as airlines are grappling with surging fuel costs and staffing challenges. Prices for flight tickets on many domestic routes operated by Vietnam’s five major carriers went up 20-40 percent for the last week of June compared to two months ago, according to an analysis by Tuoi Tre (Youth) newspaper. Airfares for international flights to and from Vietnam also soared 20-35 percent compared to pre-pandemic rates, according to a representative of Transportation Services Company (Worldtrans), a Vietnamese air charter provider. Dang Anh Tuan - head of communications of Vietnam Airlines, Vu Duc Bien - general director of Vietravel Airlines and other airline representatives all blamed rising fuel prices for the airfare spike. Fuel costs account for 30-40 percent of an airline’s total expenses, according to the International Air Transport Association (IATA). As fuel prices rise, airlines … [Read more...] about Airfares surge as domestic and int’l travel rebounds, fuel prices skyrocket

Although the summer holiday has just started, travel firms and agents have already completed 60-70 percent of their business plan while air carriers have also increased their flights to meet high travel demand. However, travel firms and agents are facing new difficulties: increasing tour prices because of rising fuel prices and a shortage of human resources. Millions of tourists ready for their trips Tran Quoc Bao, deputy director of Saigontourist Travel Company, said the company has expected to serve more than 280,000 tourists this summer. The number of tourists will be higher as tourist demand at home and abroad is surging. Three-to-eight-day domestic tours offered by Saigontourist are available nationwide. The most popular ones are tours of beaches, tours of northeastern and northwestern regions, 'green' tours, and community tours. “As summer is the peak season, we have prepared financial and human resources to diversify and better our services to meet market … [Read more...] about Vietnam’s travel firms see explosion of summer tours

Generali Vietnam introduces services to customers. The company reported a positive business result in the first quarter of this year. — Photo Courtesy Generali Vietnam Insurer Generali posted positive growth in the first quarter of this year, highlighted by gross written premiums increasing by 6.1 per cent to 22.3 billion euros (US$23.4 billion). In its latest announcement, the company confirmed that “business development in the most profitable segments demonstrates the group’s ability to consistently generate value, while maintaining a solid and industry-leading capital position.” Operating results rose to 1.6 billion euros ($1.7 billion), up by 1.1 per cent, thanks to the positive performance of the life, property and casualty (P&C), holding and other businesses segments. The life segment showed an increase in its operating result by 7.2 per cent and confirmed excellent profitability, with the new margin at 4.94 per cent. The operating result of the P&C segment … [Read more...] about Generali announces positive growth in Q1