Vietjet reports profit in 2021 despite impacts from COVID-19

Hanoi (VNA) - Vietjet Aviation Joint Stock Company (HoSE: VJC) has released its financial statements for the fourth quarter of 2021, reporting a consolidated after-tax profit of 100 billion VND (approx. 4.4 million USD) which saw an increase of 46 percent from the previous year.

Though the aviation industry continued to suffer setbacks due to the COVID-19 pandemic in 2021, it has showed signs of recovery since late last year thanks to the nationwide vaccination campaign and the strict implementation of disease prevention regulations to guarantee safe operations and protect the health of the passengers and flight crew.

In the fourth quarter of 2021, Vietjet recorded a year-on-year decreasing air transport revenue at almost 2.79 trillion VND (approx. 122 million USD). The airline, however, gained a consolidated revenue at nearly 13 trillion VND in 2021 (approx. 571 million USD) with a consolidated after-tax profit at 100 billion VND (approx. 4.4 million USD) – an increase of 46 percent from the previous year.

As of December 31, 2021, Vietjet’s assets totaled nearly 51.78 trillion VND (approx. 2.27 billion USD). Its debt-to-equity ratio stayed at 0.91 while the liquidity ratio was at 1.63 - all were considered good indicators in the aviation industry.

In 2021, Vietjet has operated nearly 42,000 flights across its network with more than 5.4 million passengers onboard. The airline has reported revenue of 2.95 trillion VND (approx. 130 million USD) in cargo transport, achieving fast growth with cargo revenue in particular rocketing by over 200 percent year on year.

Vietjet has worked to optimise the operating cost per flying hour and lower aircraft renting costs throughout the year. The airline has received support from the Government for the aviation sector including a 50 percent fee waiver for landing and taking-off, 50 percent fee waiver for environmental protection fee on aviation fuel until the end of 2022 and other discounts for airports fees and ground services rates.

In 2021, Vietjet has marked its 10th anniversary of its first flight (December 24, 2011-December 24, 2021). After 10 years, Vietjet has transported more than 110 million passengers, realising its mission of developing a widespread flight network across the country, region and beyond. It has also brought about a breakthrough in air services, making airplane a popular means of transportation in Vietnam and the world.

Vietjet has also gained significant achievements in 2021 including retaining its place in the top 10 best and safest low-cost airlines in the world by AirlineRatings, a well-known website for airline safety and product rating review.

In term of strategic partnership, Vietjet has further cooperated with big international companies to grow its fleet and improve services, moving towards the future goal of becoming a multinational aviation group.

The airline in December 2021 has welcomes its first wide-body aircraft Airbus A330-300, getting ready for safe and eco-friendly middle and long-range flights which can go as far as 12,000 kilometers.

Joining hands to fight against the pandemic, Vietjet has transported tens of thousands of doctors, health staff, soldiers, police officers and disease prevention staff to their destinations of work, plus many more flights to deliver vaccines, medical equipment, and aid cargo.

A Vietjet representative has said that the airline would keep going for digital transformation projects to introduce more added-value services like wireless internet, shopping, logistics, testing, health services, hotels etc. on Vietjet’s website and application.

Meanwhile, the airline has also expanded its ground services and pilot training not only for its own but also aiming to offer services to other airlines in the region. As Vietnam has fully opened to international flights with a robust development of tourism places and resorts nationwide, the aviation sector is deemed to recover and strongly grow again in 2022 and the coming years.

As a new-age carrier, Vietjet has revolutionised the aviation industry. With a focus on cost management ability, effective operations and performance, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018 and 2019. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others./.