Vietjet records positive results compared to its peers in the world in the first half of this year. ( Photo courtesy of the airline) Hanoi (VNA) - Vietjet Aviation Joint Stock Company (HoSE: VJC) recorded lower-than-expectedloss of 1.44 trillion VND (about 62 million USD) for its air transport activities inthe first half of 2020.
This wasregarded as a positive result compared to the aviation industry as a whole dueto impacts of the global pandemic, according to the company.
Duringthe period, air transport brought Vietjet a revenue of over9.22 trillion VND (about 397 million USD), a decrease of 54 percent year-on-year,the carrier's audited business results which were released on September 1 revealed.
Vietjetposted consolidated revenue of 10.97 trillion VND (nearly 473 million USD) in the January-June period, down 55 percent year-on-year.Its post-tax consolidated profit in H1 stood at 47 billion VND (2 million USD).
Challengedby a decrease in cash flow from the air transport business, Vietjet tookinitiatives to transfer its investment portfolios and a number of assets toshore up its capital and cash as well as to keep the business afloat inpreparation for the resilience of the aviation industry.
Theairline’s total asset exceeded 46.31 trillion VND (1.99 billion USD) with the owner’s equity being at over 17.31trillion VND (745 million USD) including treasury shares. Its currentliquidity remained at 1.1 while debt to equity ratio stood at 0.57,which was among the lowest in the global aviation industry.
Thisallowed Vietjet to proceed with its mid- and long-term financing plans inorder to strengthen its financial position.
Oncethe domestic market was reopened in June, the carrier resumed all of itsdomestic routes with 300 flights daily, a growth of three to five times of thatrecorded during the country’s pandemic peak.
Vietjetalso launched eight new routes to meet rising domestic travel demand,increasing its total domestic flight network to 52 routes with overall flightsoperated reaching 14,000 flights.
InJune alone, the airline carried up to 1.2 million passengers, marking animpressive recovery for the domestic market.
Meanwhile,Vietjet has been actively implementing cost-saving measures with an averagecost drop of 55 percent due to operation capacity reduction of between 30 percent and35 percent and service cost decrease of between 20 percent and 25 percent.
Inresponse to the COVID-19 pandemic, Vietjet has carried out severalcomprehensive solutions since early 2020 including expanding the cargobusiness, developing SkyBoss products and ancillary services, and offering theunlimited flight pass “Power Pass”. It has boosted cargo transport servicessince April, being the first airline in Vietnam approved to deploy cargo operations in thepassenger cabin (CIPC).
Vietjethas received a licence from the Civil Aviation Authority ofVietnam to launch its own self-service ground operations at Noi BaiInternational Airport. It would help the carrier to be more independent inoperation while reducing costs and increasing ancillary revenue as well asimproving its service quality.
Withcomprehensive resources being well-prepared, backed by low-cost carrierbusiness model, Vietjet is expected to stand firm with fast recovery and robustgrowth once the aviation market bounces back if the carrier is granted supportto improve its liquidity like other airlines in the world./.
VNA
