Vietnam Airlines reported below-target profits for 2006 Wednesday despite increased flights, passenger numbers and turnover, partly blaming higher fuel costs for it.
Turnover was 17.5 trillion VND (nearly 1.1bio US$), 5% higher than expected and up 12.4 percent year-on-year.
But profits were only 304.5 billion VND (19mio US$), or 8% below the target. The statement did not indicate year-on-year change in profit.
"The price of oil was 18.25 percent higher than expected, leading to an increase of 767 billion VND in fuel costs."Higher aircraft leasing costs, fierce competition from international airlines, bad weather, bird flu risks, and security concerns were also factors.
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