Vietjet Air reports high revenue growth in first half of 2019

Illustrative image (Source: Vietjet Air)

Hanoi (VNA) - In the first six months of 2019, Vietjet’s revenue from air transport continued growing by 22 percent and its air transport profit increased by 16 percent year on year.

According to Vietjet’s business results in the first half of 2019, air transport revenue was 20,148 billion VND (about 871.7 million USD), and profit before tax was 1,563 billion VND. Consolidated results included aircraft trading, consolidated revenue reached 26,301 billion VND, up 24 percent and profit before tax was 2,398 billion VND, up 11 percent year on year. 

In the first half of 2019, Vietjet operated 68,821 flights, equivalent to 45 percent of total flights operating by all Vietnamese airlines, transported 13.5 million passengers in all network. Vietjet maintained its leading position in domestic transportation with 44 percent market share in the period. 

The international market has had a large room to grow, its good profit margin thanks to ancillary revenue, a low fuel cost advantage and an increase in foreign currency sources. Correspondingly, the number of passengers in international routes grew by 35 percent to approximately 4 million passengers. The proportion of international revenue surpassed domestic revenue, reached 54 percent of total air transport revenue. Ancillary and cargo revenue was 5,474 billion VND, the proportion increased from 21 percent last year to 27 percent this year, mainly thanks to the contribution from the growth of international routes.

During Q1 & Q2/2019, Vietjet has opened nine international routes to Japan, Hong Kong, Indonesia, China and 3 domestic routes, which helped increase the total number to 120 routes, including 78 international routes and 42 domestic ones. The flight network has covered destinations in Vietnam and international to Japan, Hong Kong (China), Singapore, the Republic of Korea, Taiwan, Thailand, Myanmar, Malaysia, Cambodia and China.

About other operating results, the revenue passenger kilometers (RPK) stood at 16.3 billion, up 22 percent year on year, the load factor was averagely 88 percent, the technical reliability was 99.64 percent and on-time performance (OTP) reached 81.5 percent.

In the first 6 months, Vietjet’s equity reached 15,622 billion VND, up 32 percent year on year. Total assets were 44,461 billion VND, up 30 percent year on year; including 21,955 billion VND  long-term assets, accounting for 49 percent of total assets. Debt to Equity ratio was 0.50, which was positive compare to 0.64 of last year. The Annual General Shareholders’ Meeting in April decided to pay 2018 dividend at the rate of 55 percent, higher than the planned 50 percent approved at the annual shareholders’ meeting last year.

In the first half of 2019, Vietjet also introduced a new version of Vietjet Air apps which integrated Vietjet SkyClub membership programme with many incentives and utilities including buying air tickets quickly on smart phones, hunting 0 VND tickets every Friday, and free payment fees.

Vietjet Aviation Academy located at Saigon High-Tech Park in Ho Chi Minh City is an  international-standard modern training facility with equipment, programmes of European Union Aviation Safety Agency (EASA) standards, which organized 250 courses for 5,623 pilots, cabin crews, engineers and aviation staffs in the first 6 months.

Especially, Vietjet is one of the few foreign enterprises and the only Vietnamese becoming a member of Japan Business Federation – Keidanren, an organization with a membership comprised of world and Japanese companies. Vietjet’s good operation and business results were recognized through many domestic and foreign prestigious awards, such as the HR Asia – Best company to work for in Asia 2019 award, and “The Best Service Foreign Low Cost Carrier” award.

Vietjet is the first airline in Vietnam to operate as a new-age airline offering flexible, cost-saving ticket fares and diversified services to meet customers’ demands. It is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate.

Vietjet was named “Best Ultra Low-Cost Airline 2018 - 2019” and awarded the highest ranking for safety with 7 stars in 2018 by the world’s only safety and product rating website AirlineRatings.com. The airline has also been listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018.

Currently, Vietjet operates around 400 flights daily, carrying more than 80 million passengers to date, with 120 routes covering destinations across Vietnam and international destinations such as Japan, Hong Kong, Singapore, the RoK, Taiwan, mainland China, Thailand, Myanmar, Malaysia, Cambodia and Indonesia.-VNA