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Vietjet parent company reports profit of nearly US$38.7 million

Statistics in 2022 indicated a robust recovery of the aviation industry post-pandemic. In Q4/2022, Vietjet’s parent company reported a net revenue of approx. US$315.5 million, leaping by 175% YOY with a profit of approx. US$38.7 million.

HO CHI MINH CITY – Vietjet has transported 20.5 million passengers on 116,000 flights in 2022, of which domestic transport grew by 20% over 2019’s, supporting the airline’s recovery momentum. The number of domestic passengers transported in Q4/2022 increased sevenfold YOY and was higher than the pre-pandemic growth rate of 24%.

To accommodate its stratety of expanding and growing middle-range international flight network, Vietjet has developed a widebody fleet of 3 A330 aircraft. The airline has opened 20 new routes last year with a focus on the Indian market to connect economic-tourism hubs like New Delhi Mumbai to Hanoi and Ho Chi Minh City. As of December 31, 2022, Vietjet operated 103 flight routes.

Eyeing to operate across continents and bring the flying opportunities to millions of people, Vietjet never ceases to develop its international network with new routes to Astana and Almaty (Kazakhstan) and Melbourne and Sydney (Australia). Such efforts also put Vietjet in the leading role to promote the economic-trade-tourism relationships between Vietnam and other countries, helping to bring Vietnam’s image to the world while taking local and international tourists to destinations in the country. The airline has contributed greatly to the State budget and the community.

Statistics in 2022 indicated a robust recovery of the aviation industry post-pandemic. In Q4/2022, Vietjet’s parent company reported a net revenue of approx. US$315.5 million, leaping by 175% YOY with a profit of approx. US$38.7 million. The total revenue for 2022 was approx. US$1.39 billion while the profit was approx. US$9.23 million. The airline has paid a total of approx. US$186.79 million of direct and indirect taxes, fees and charges last year.

Vietjet reported consolidated revenue of approx. US$1.68 billion in 2022, with a consolidated loss of VND2,171 billion (approx. US$93.1 million) mainly due to heavy capital investment in its core business. Vietjet has transferred more than approx. US$152.7 million of profit to the parent company for asset investment in acquiring one new A321 NEO aircraft from Airbus, two A321 aircraft from lessors and three aircraft engines.

By the end of 2022, Vietjet’s total asset reached more than approx. US$2.87 billion, increasing by 30% YOY owing to long-term assets growing by over $200 million. The long-term debt-to-equity and liquidity ratios stayed at 0.7 and 1.3 respectively, which were considered as good indicator in the aviation industry. As of December 31, 2022, the balance of cash and cash equivalents remained at approx. US$77.3 million, well faciliating the liquidity demand for business operations.

In 2023, Vietjet continues to set high goal of revenue growth based on the reopening of the Chinese market while further promoting international markets of great potential like India, South Korea, Japan, Australia, etc. It is of the utmost urgency that the Government considers lifting the price cap on flights and allows for fuel surcharge to strengthen the positions and competitive capabilities of domestic airlines as a wave of international airlines is expected to land in Vietnam this year.

In June 2022, the “Fly now, Pay later” service by Vietjet and Movi was awarded the “Best New Fintech Product 2022” by the UK’s prestigious magazine The Global Economics Times. Vietjet also won several international awards, including the “World Airline Award” by Skytrax, “Most Valued Airline of the Year in Asia 2022” and “Best Cabin Crew Service in ASIA 2022” by the World Business Outlook in November 2022.

Striving to meet the ever-growing demands of the customers while further engaging with them, Vietjet has launched Vietjet SkyJoy loyalty program with conveniences and privileges to accumulate and redeem loyalty points with special offers from big brand partners. Vietjet SkyJoy is expected to elevate Vietjet’s brand value and increase the customer pool.

Joining hands with the community to support the disadvantaged during the Lunar New Year 2023, Vietjet has operated free flights for poor workers and orphaned students from all over the country to bring them home for a reunion with the family.

International aviation is expected to grow strongly in 2023, which is an opportunity for airlines of sustained positive financial and operational capabilities like Vietjet.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.