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Vietjet ranks 12th among airlines earning most ancillary revenue

Sep 20. 2019
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By THE NATION

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Vietjet’s audited business results for the first half of this year showed 18,984 billion dong (Bt24.8 billion) in passenger revenue, recording a 17 per cent year-on-year increase.

Accordingly, ancillary revenue from passenger takings hit 5,429 billion dong, marking a 43-per-cent increase year on year, mainly thanks to more people flying overseas. This revenue accounted for 27 per cent of the total revenue. 

The 2019 CarTrawler Ancillary Revenue YearBook, which compiles statistics from over 100 airlines’ audited financial statements, ranked Vietjet 12th in terms of ancillary revenue to total air transport revenue ratio.

According to the sustainable development model of low-cost carriers (LCCs), ancillary revenue is a decisive factor in the success of a carrier when its profit margin reaches over 90 per cent.

Aiming to expand its service ecosystem and continue on a path of sustainable development, Vietjet plans to provide ground services for itself at Hanoi’s Noi Bai International Airport from 2020. This will bring benefits to both customers and the airline, including improvement of service quality and ancillary revenue.

Vietjet aims to be one of the top five airlines for ancillary revenue in the near future.

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