Vietnam Air profits plunge

Vietnam Airlines profits tumbled 42 percent year-on-year as the state-owned flag carrier was hit by the effects of the global recession and swine flu outbreak.

The airline?s pre-tax profit fell to US$8.1 million last year, down from $14 million a year earlier, it said late Tuesday.

The carrier also cited ?epidemic outbreaks? for its profit fall, an apparent reference to the global A (H1N1) swine flu pandemic.

But the airline noted it had still posted profits as other international airlines suffered losses in 2009, one of the worst years on record for airlines following the global economic crisis.

?Vietnam Airlines still earned profits? while increasing its fleet and opening new domestic routes, it said.

VNA?s revenue for the year reached $1.3 billion, against $1.56 billion reported a year earlier. The 2009 figure was four percent higher than the target, it said.

The airline said it transported 9.3 million passengers ? up from 8.8 million the previous year. One third of the passengers were foreigners, it said.
Vietnam Airlines is targeting 11 million passengers this year.

The International Air Transport Association, an industry group, has said global passenger demand is expected to grow this year after a fall during a difficult 2009 for the industry.

Shares of Asia?s largest carrier, Japan Airlines (JAL), have plunged this week on fears the carrier is preparing for a court-backed bankruptcy filing.

Vietnam Airlines said it was due Wednesday to begin direct flights to Osaka five times a week to replace previous cooperative flights with JAL.

Vietnam Airlines expects to triple its fleet of 50 aircraft by 2020, and officials have said it is seeking to become one of the region?s leading carriers.

Sourced = The Phnom Penh Post