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Vietjet achieves remarkable growth in first half of 2019

Author: Theodore Koumelis / Date: Tue, 08/06/2019 - 15:46
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In the last six months, Vietjet operated a total of 68,821 flights and transported 13.5 million passengers, accounting for up to 45 per cent of the total number of flights operated by all Vietnamese carriers.

Singapore – Vietjet has just released its business results for the first half of the year, with an air transport revenue of VND20,148 billion (approximately 863 million USD), an increase of 22 per cent from the same period last year. Vietjet’s pre-tax profit was VND1,563 billion (approximately 67 million USD), an increase of 16 per cent year on year, while the consolidated revenue, including profits earned from the trade of aircrafts, reached more than VND26.3 trillion (approximately 1.1 billion USD), an increase of 24 per cent. The pre-tax profit was nearly VND2.4 trillion (approximately 103 million USD), with an 11 per cent year on year increase.

In the last six months, Vietjet operated a total of 68,821 flights and transported 13.5 million passengers, accounting for up to 45 per cent of the total number of flights operated by all Vietnamese carriers. With 44 per cent of the market share in the first half of 2019, Vietjet maintains its leading position in the domestic transport industry. Vietnam Airlines arrived at second place with 34 per cent of the market share.

Vietjet attributes its positive results to a strong growth in the international market coupled with a large profit margin from ancillary revenue and low fuel cost. The total number of passengers transported by Vietjet grew by 35 per cent, with nearly four million passengers. Revenue from its international flights surpassed domestic flights to reach 54 per cent of Vietjet’s total airway transport revenue and increased their profit from foreign currencies. Ancillary and cargo revenues were at more than VND5.5 trillion (approximately 236 million USD), increasing from 21 per cent last year to 27 per cent this year. Vietjet’s Revenue Passenger Kilometers (RPK) also reached 16.3 billion, increasing 22 per cent year-on-year. Load factor was at 88 per cent on average, while its technical reliability reached 99.64 per cent and on-time performance (OTP) reached 81.5 per cent.

The technical statistics also contributed to positive business results. Vietjet’s equity reached VND15,622 billion (approximately 667 million USD), an increase of 32 per cent from the same period in 2018. Vietjet’s total assets reached nearly VND44.5 trillion (approximately 2 billion USD), an increase of 30 per cent year on year; of which almost half were long-term assets coming up to more than VND21.9 trillion (approximately 938 million USD). The debt to equity ratio was at 0.50, a positive result compared to 0.64 last year. In April, Vietjet’s Annual General Shareholders’ Meeting approved to pay 2018 dividends at a rate of 55 per cent, higher than the planned rate of 50 per cent.

In the last six months, Vietjet also introduced a new version of the “Vietjet Air” mobile app, which integrated Vietjet SkyClub memberships with various rewards and perks. Other key achievements of 2019 that affirmed Vietjet’s positive performance include the continued success of the Vietjet Aviation Academy, with a modern training programme that subscribes to European Union Aviation Safety Agency (EASA) standards; and attaining both domestic and international milestones, such as becoming a member of the Japanese Business Federation – Keidanren.

With its achievements in the past year, Vietjet expects to maintain its trajectory of positive growth in the next three years, as projected by the Board of Management at the Annual General Shareholders’ Meeting. 

ABOUT THE AUTHOR

Theodore Koumelis

Co-Founder & Managing Director

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