Vietnam Airlines plans a new share issue to help pay off outstanding debts.
It got government approval to sell the new shares to existing investors, and hopes to raise $346 million.
The share issue will be completed by June next year, said Chairman Dang Ngoc Hoa.
"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 said at a shareholder meeting.
The airline is targeting a full recovery by 2023.
It expects to post a loss of $624 million, which is less than previously forecast.
The Vietnamese government separately agreed to buy more shares.
The airline is 86% owned by the government.
Written by Ray Montgomery, Asia Editor
