Tuesday, June 02, 2020

Vietjet lifts revenue 22% in year’s first half

Aug 02. 2019
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Vietjet boosted revenue 22 per cent to 20,148 billion dong in the first half of the year compared with the same period last year.

This resulted in profit before tax of 1,563 billion dong, making an increase of 16 per cent year on year. Consolidated revenue including the business results earned from the trade of aircraft, reached more than 26.3 trillion dong, increasing 24 per cent. Profit before tax was nearly 2.4 trillion dong, equal to 11 per cent year on year increase, the company said.

During the last six months, Vietjet operated 68,821 flights, equivalent to 45 per cent of total flights operated by all other Vietnamese airline carriers. Those number of flights meant Vietjet had transported 13.5 million passengers in all routes the carrier is operating. Vietjet maintained its leading position in Vietnamese aviation with 44 per cent market share in the first six months of the year. 

Vietnam Airlines arrived at the second place, with 34 per cent. Vietjet finds room for it to grow in international market is still large thanks to good profit margin from ancillary revenue and low fuel cost. Growth in international market earned Vietjet a sound increase of foreign currencies. Number of passengers in international routes operated by Vietjet grew by 35 per cent, with nearly 4 million passengers.

Revenue of international transport service surpassed that of domestic to reach 54 per cent of total Vietjet’s airway transport revenue. Ancillary and cargo revenues were more than 5.5 trillion dong, increasing from 21 per cent last year to 27 per cent this year thanks to the growth of international route operation.

During the year’s first six months, Vietjet has opened nine new international routes to Japan, Hong Kong, Indonesia and three other domestic routes. Those newly-opened routes totalled Vietjets routes around the world to 120; of which, 78 international routes and 42 domestic ones. Vietjet’s flight network now covers number of destinations in Vietnam, Japan, Hong Kong, Singapore, South Korea, Taiwan, Thailand, Myanmar, Malaysia, Cambodia and China. Vietjet has also operated at large to many airports in the world, including in Dubai and Doha.

In that period, Vietjet’s revenue passenger kilometres (RPK) was at 16.3 billion dong, increasing 22 per cent year on year. Its load factor was averagely 88 per cent, technical reliability was 99.64 per cent and on-time performance (OTP) reached 81.5 per cent.

Vietjet’s equity reached 15,622 billion dong, increasing 32 per cent over the same period last year. Vietjet’s total assets are nearly 44.5 trillion dong, an increase of 30 per cent year on year; of which more than 21.9 trillion dong long-term assets, accounting for 49 per cent of total assets. Debt to equity ratio was 0.5, which was positive compared to 0.64 of last year. The airline at the annual general shareholders’ meeting in April decided to pay the 2018 dividend at the rate of 55 per cent.

During the last six months, Vietjet also introduced a new version of Vietjet Air apps which included buying air tickets quickly on smartphones, offering free tickets every Friday and free payment fees.

The Vietjet Aviation Academy at Ho Chi Minh City High-Tech Park is a modern training facility using equipment and training programmes under European Union Aviation Safety Agency (EASA) standards, which organised 250 courses for 5,623 pilots, cabin crew members and engineers.

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