Vietnam Airlines to issue $346m in shares to support recovery

Vietnam Airlines said on Tuesday it would issue nearly $346m worth of shares for existing stakeholders to boost its recovery from the impacts of the coronavirus pandemic and return to profitability by 2023. The issuance will be completed by June next year after the carrier received approval from the authorities. All capital raised would pay off outstanding debts, its chairman Dang Ngoc Hoa said at a regular shareholder meeting. “We have suffered from the worst crisis ever in history due to restrictions of governments around the world to curb the spread of the virus,” Hoa added. With the uncertainty of the pandemic, Vietnam Airlines has set a target of full recovery and making profit from 2023. The national flag carrier, 86% owned by the government, expected to make losses of 14.445t dong ($624.65m), about 2.4t dong less than previously expected. To support the airline, the Vietnamese government last month approved a plan to buy new shares from the flag carrier through its State Capital Investment Corp (SCIC).<br/>