Vietnam Airlines see profits shrink

VIETNAM Airlines has reported a dramatic drop in pre-tax profits; from US$23 million in 2007 to $14 million in 2008.

This is even though the actual revenues rose from $1.27 billion to $1.56 billion over the same period. The airline blamed the peaking of global oil prices earlier in 2008, which it managed to recover from with fuel savings and limiting recruitment.

“Vietnam Airlines has never faced so many continuous challenges and disadvantages,” said its general director Pham Ngoc Minh.

While this is a significant drop in profits it is still encouraging that the airline has reported any at all, at a time with so many airlines and carriers reporting losses.