Vietnam Airlines’ budget carrier, Pacific Airlines, reported a revenue of approximately VND 4.4 trillion and a pre-tax loss of about VND 1.5 trillion in 2023, signifying a reduction in losses compared to the previous year (VND 2.1 trillion). Pacific Airlines accounted for a quarter of Vietnam Airlines’ total loss of VND 6 trillion in 2023.
The airline’s operations have faced challenges since the onset of the COVID-19 pandemic in 2020. From 2020 to 2023, Pacific Airlines accumulated losses exceeding VND 8 trillion.
|
Pacific Airlines’ Pre-tax Profit
|
According to Vietnam Airlines, Pacific Airlines has been adversely affected by the slow recovery of the international market, while domestic passenger growth has fallen short of expectations. Additionally, rising fuel prices and currency fluctuations have further burdened the airline.
In response to these challenges, Vietnam Airlines stated that it will continue implementing measures to optimize resources, negotiate payment deferrals with suppliers, and seek cost reductions for Pacific Airlines.
Aircraft Return Effective March 18
The announcement comes amidst a period of significant difficulties for Pacific Airlines. Effective March 18, the airline temporarily suspended operations due to a lack of aircraft and returned unused slots (take-off and landing permits).
On a positive note, the airline has successfully cleared a debt of USD 220 million, equivalent to over VND 5 trillion, with its aircraft leasing partner. In return, the airline has surrendered all aircraft operating in Vietnam.
|
Pacific Airlines is the first low-cost carrier in Vietnam. Established in 1991, Pacific Airlines was founded with state-owned enterprises as its shareholders. In 2007, Qantas Group acquired a 30% stake in Pacific Airlines, and the airline was renamed Jetstar Pacific. In 2012, the State Capital Investment Corporation (SCIC) transferred its 68% stake in Jetstar Pacific to Vietnam Airlines. In July 2020, Jetstar Pacific reverted to its original name, Pacific Airlines. In the first quarter of 2022, Vietnam Airlines received a 30% stake from Qantas, increasing its ownership in Pacific Airlines to nearly 99%, with the remaining 1% held by another shareholder. |
