Robustly expanding international network, Vietjet reports profit after audit

(Vietjet, HoChiMinh City, August 31, 2023) - Vietjet Aviation Joint Stock Company (HoSE: VJC) has released the audited biannual financial statements 2023 with positive performance as it has been promoting the domestic market while pioneering a strong expansion of international network to India, Australia, Kazakhstan and Indonesia.

During the first half of 2023, Vietjet has safely operated 65,900 flights and transporting over 12.1 million passengers - of which 3.5 million international travelers, reporting a YoY increase of 26% and 30% respectively. The average seat utilization rate was over 85% while the technical reliability rate stood at 99.63%. The total cargo volume transported by Vietjet reached 33,000 tons, surging by nearly 40% YoY.

Vietjet's fleet consists of 103 aircraft, including Thai Vietjet fleet and 3 new ones on delivery.

Air transport revenue and consolidated revenue were reported at VND25.1 trillion (approx. US$1.036 billion) and VND29.5 trillion (approx. US$1.21 billion), leaping by 69% and 85% YoY respectively. Ancillary revenue maintained a high growth rate, reaching VND9 trillion (approx. US$371.7 million), a two-fold increase year YoY and accounting for 40% of the total revenue. Separate after-tax profit and consolidated after-tax profit reached VND48 billion (approx. US$1.98 million) and VND137 billion (approx. US$5.6 million), respectively, lower than the compiled financial statements. This was due to higher marketing and advertising expenses for new international routes and a deferred revenue in aircraft financing.

Vietjet continued to enjoy high growth rate and profitability thanks to its sustainable business strategy. The airline pioneered the development of its international network with back-to-back innovations and improved its ancillary products and services with high profit margins. Vietjet also owned a new fleet of aircraft and had large orders with Airbus and Boeing, bringing advantages in operational efficiency and financial performance.

In Q2/2023, Vietjet opened 11 new international routes to Australia, Indonesia, and India, bringing the total number of routes to 120 (45 domestic routes and 75 international routes).

Vietjet was a pioneer in operating flights to the Indian market with seven routes connecting Hanoi and Ho Chi Minh City to Mumbai, Delhi, Ahmedabad, and Kochi.

Starting from mid-April 2023, Vietjet has opened three direct routes in a row from Australia's largest cities, Sydney, Melbourne, and Brisbane, to Ho Chi Minh City.

The airline also launched the Ho Chi Minh City – Jakarta (Indonesia) route in August 2023 on the occasion of the Vietnam-Indonesia on Policies and Law to Promote the Economic, Trade and Investment Cooperation.

In the first 6 months of the year, there were 14.6 million international passengers coming to Vietnam by air. Vietnamese airlines transported 6.9 million passengers, of which more than 50% flew with Vietjet. Transporting 3.5 million international travelers, Vietjet has actively facilitated international tourism and investment, contributing to the recovery and development of the economies.

Vietjet has launched Business class and varying products and services such as "Fly first - Pay later" program, travel credit cards, free travel insurance, in-flight duty-free shopping and particularly, the SkyJoy loyalty program which now has nearly 9 million members. While the modern fleet has helped the airline to optimize fuel costs, a roughly 40% decrease of fuel price was also a factor for maintaining efficiency.

As of June 30, 2023, Vietjet's total assets reached over VND71.2 trillion (approx. US$2.94 billion) while the debt/equity ratio and the liquidity ratio were 1.2 and 1.5 respectively, which were all within good range of the aviation industry.

By the end of Q2/2023, the cash balance and cash equivalents of Vietjet reached VND2.16 trillion (approx. US$89.5 million) , which, plus the working capital limit, ensures the quick ratio of the company. Vietjet paid a total of VND2.79 trillion (approx. US$115.2 million) of direct and indirect taxes and fees to the State in the first 6 months of 2023.

Vietjet has received a BB+ credit rating with a Stable outlook (VnBB+) from Saigon Ratings. Saigon Ratings believes that Vietjet has the flexibility in gaining various alternative sources of revenue besides its core business operations, thereby helping the airline maintain positive profit during the Covid-19 pandemic.

As a contribution to the community, Vietjet maintained free or cheap flights for low-budget workers and offering opportunities to those who have not yet had a chance to fly.

In June 2023, Vietjet continued to affirm the leading position in the global low-cost airline industry by receiving two awards the "Best Low-Cost Airline with Onboard Service 2023" and the "Best Ultra-Low-Cost Airline in the World 2023" from AirlineRatings.

In August 2023, Vietjet was honored by Brand Finance to be in the Top 100 Most Valuable Brands in Vietnam and one of the Top 50 Sustainable Development Enterprises in 2023 in the category of Carbon Footprint Reduction.

With a large number of passengers, especially international passengers, and positive business performance in the first half of the year, it is expected that Vietjet will achieve and exceed its 2023 plan, continuing to contribute to the recovery and growth of tourism, investment, and the economy in general.