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Vietnam Airlines to raise new capital to overcome Covid-19 losses

Vietnam Airlines

Vietnam Airlines has confirmed it will issue nearly US$346 million in new shares to existing stakeholders.

The move comes as the flag-carrier seeks to accelerate its recovery from the impact of the Covid-19 pandemic and return to profitability by 2023.

The issuance will be completed by June next year.

Vietnam Airlines – considered the World’s Leading Cultural Airline by voters at the World Travel Awards – received approval for the issue from the authorities earlier.

All capital raised will be used to pay off outstanding debts, its chairman Dang Ngoc Hoa said at a regular shareholder meeting.

Due to the Covid-19 pandemic, the carrier expected to make losses of around US$625 million this year.

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