Leading tour operator reports loss of US$3.4 mln
With COVID-19 precluding travel, Vietravel reported a first-half loss of VND80 billion (US$3.4 million), down from a profit of VND30 billion in the year-ago period.
Staff at a Vietravel agency in HCMC introduce tours to customers. Photo courtesy of Vietravel.
The giant tour company suffered a loss of over VND38 billion in the second quarter, its third quarterly loss in a row, according to its latest consolidated financial statement. Revenues were down 90% year-on-year to VND206 billion.
First half revenues fell 72% to VND995 billion.
The company blamed the losses on the pandemic's severe impact on the tourism industry, with Vietnam curbing international travel since March and closing all tourist destinations in April 1 to 22 for a social distancing campaign.
With its revenues depending mainly on selling tours, Vietravel is one of the tour companies to be hardest hit.
Vietravel has invested nearly VND27 billion in its Vietravel Airlines. It was originally planned for its first commercial flight to take off in early 2021.
