After-tax profit of Vietjet’s parent company totals 274 billion VNDN (VNA) Ho Chi Minh City (VNA) - Vietjet Aviation Joint Stock Company(HOSE: VJC) has released its financial statements reporting 4,430 billion VND (approx.192 million USD) of consolidated revenue in the fourth quarter of 2020 and atotal of 18,210 billion VND (approx. 790 million USD) of consolidated revenuein 2020.
After-tax profit of Vietjet’s parentcompany was 274 billion VND in Q4/2020 while its consolidated after-tax profitreached 995 billion VND. In 2020, Vietjet recorded a consolidated after-taxprofit of 70 billion VND, making it one of the few airlines in the world havingno workforce reduction and turning a profit.
According to the statement,ancillary revenue accounted for nearly 50 percent of the airline’s totalrevenue, showcasing Vietjet’s efforts to promote ancillary services to offsetdecreasing air travel revenue.
Vietjet’s total assets reach 47,036 billion VND (Photo: VNA) Vietjet’s total assets reached 47,036billion VND while its owner equity was at 17,326 billion VND including treasuryshares. Its debt-to-equity ratio stayed at as low as 0.66 while theliquidity ratio remained at 1.2, which is considered a good performance giventhe current situation of the aviation industry.
Vietjet last yearconfigured some of its passenger aircraft for freight transportation purposewhile applying new operational methods to strengthen its cargo servicecapacity. The airline was the first airline in Vietnam to receive approval to deploycargo operations in the passenger cabin (CIPC). It has sincedelivered more than 60,000 tonnes of cargo internationally, seeing its freightrevenue leaping by 75 percent in Q4/2020 year-on-year. In 2020, air cargogrowth was recorded at 16 percent. Through interline agreements, Vietjet’scargo for the first time also landed in America and Europe, which wereinitially hold for its future plan.
Thanks to its outstanding cargotransportation, Vietjet has won the “Belly carrier of the year” and the“Low-cost carrier of the year” awards by cargo magazine Payload Asia.
The airline is the first airline in Vietnam to receive approval to deploy cargo operations in the passenger cabin (CIPC) (Photo: VNA) In 2020, Vietjet also marked amilestone by launching Vietjet Ground Services Center (VJGS) at Noi BaiInternational Airport (Hanoi). It has helped the airline better manage itsoperating costs while improving the brand recognition and service quality.
The airline has also introduced aseries of new products and services for the sake of the passengers’convenience, for example the unlimited Power Pass, the upgraded Power PassSkyboss or SkyBoss and Deluxe classes with better flying privileges.
Vietjet has made drastic cuts tooperating expenses by optimizing fleet operations with a 10 percent costreduction, negotiating a 20 percent – 25 percent discounts with suppliers whilebringing down at least 10 percent of daily operating costs. The airline alsosuccessfully hedged jet fuel in May 2020, helping to save 25 percent of fuelcosts compared to buying at the market price.
Vietjet has decided to transfer itsinvestment portfolio and a number of assets accumulated beforehand to gathercapital and cash and nurture its resources for a strong recovery once theaviation industry bounces back.
The airline has conducted 78,462flights with 120,093 safe flight hours, flying more than 15 million passengerslast year. By strictly abiding by disease prevention regulations of the WHO andthe authorities, all of Vietjet’s employees and passengers have stayed safe in2020.
Vietjet has reported very positiveoperating indexes last year, for example its load factor was at over 80 percentwhile on-time performance rate stayed at 90 percent, one of the highest in theworld. Vietjet’s technical reliability rate stood at 99.64 percent and receivedthe highest safety ranking of 7 stars. It was also listed in the top 10 safestand best low-cost airlines in the world in 2020 by Airlineratings.
Apart from commercial activities,Vietjet has participated in several charity activities to support itspassengers and the community, spreading the ‘living well, living nicely’ spiritof Vietjet people to the community. Vietjet President and CEO Nguyen Thi PhuongThao has been honored as one of the top 110 figures in Asia in terms ofphilanthropic activities by Tatler publications.
Vietjet resumes its entire domestic network of more than 47 routes. (Photo: Vietjet) Vietjet has so far resumed itsentire domestic network of more than 47 routes. The airline has receivedsupports from the Government for tax discounts, tax-payment extensions andreductions in landing/take-off fee, ground services fee and air control fee, aswell as being considered for the government’s financial aid proposal for localairlines. Taking those into accounts, Vietjet, with its outstanding cost andoperation management while leading innovation in the industry, is deemed to bestrong enough to bounce back anytime in 2021, bringing flying opportunity atflexible but low prices and diverse services to the customers./.
VNA
