Vietjet: Revenue from core business increases 49%, boosting international routes

Vietjet Aviation Joint Stock Company (HOSE code: VJC) announced its business results in 2018, exceeding the plan.

2018 continues to mark a successful year of high and sustainable growth of Vietjet, the new age carrier. Business results in 2018 before auditing showed the total revenue of 52,400 billion VND, up 24% year on year and overpassed 103% the plan set up at the Shareholders’ General meeting; Total profit before tax reached 5,830 billion VND. Revenue from air transport reached 33,815 billion VND, an increase of 49% compared with the previous year and reached 112% of the plan. Ancillary revenue grew 57% over the same period and contributed nearly 27% to the total revenue in 2018, increase 2% year on year.

As at 31st December 2018, cash balance was 7,161 billion VND. The Debt to Equity Ratio (DER) was very low at 0.04. The Return on Equity (ROE) reached 37.6%. Price to Earning Ratio (P/E) is attractive at 11.5.

Vietjet operated 118,923 flights on 105 routes, including 39 domestic and 66 international ones, covering destinations in Vietnam and Japan, Hong Kong (China), Singapore, South Korea and Taiwan (China), Thailand, Myanmar, Malaysia, Cambodia, China..., Vietjet’s aircraft also operate at Dubai and Doha airports. The international network expansion strategy of Vietjet was highly promoted in order to increase the foreign currency collection from ticket sales and to take advantage of lower fuel price at international markets.

In 2018, the load factor reached over 88,06%, the technical reliability was 99,64% and the on-time performance (OTP) stood at 84,2%.

Also in 2018, Vietjet began to receive and operate the new generation A321neo aircraft which could save up to 16% fuel cost, contributing to decrease Vietjet operating costs in the coming years. Vietjet's fleet as at 31st December 2018 includes 64 modern aircraft with the youngest average age, just 2.82 years.

The Company has been successfully qualified with "IOSA International Air Safety" 3rd certificate in September 2018. Vietjet's safety-operating indicators have been among the leading airlines in the Asia-Pacific region and awarded the highest ranking for safety with 7-stars in 2018 by the world’s only safety and product rating website AirlineRatings.com.

In 2018, Vietjet conducted 231 training courses for 8,083 trainees in turns, including 96 safety, security training courses for 2,358 trainees. In the beginning of November 2018, on the occasion of the official visit of French Prime Minister to Vietnam, Vietjet launched the Aviation Academy. This is a large-scale and modern training facility, equipped with Flight Simulator Complex (SIM) in partnership with Airbus. These were evaluated and approved by European Aviation Safety Agency (EASA), certifying European standards - the world's leading aviation standards. This is an important milestone in Vietjet's development to modernize training, education and enable Vietjet Aviation Academy to reach regional and international level.

Besides, Vietjet was granted many prestigious awards in 2018 including Labor Medal, Vietnam's top 50 listed companies and top 40 most valuable brands of Forbes Magazine, Top 50 airlines for healthy financing and operations of AirFinance Journal, Top 50 largest taxpayers in Vietnam, 50 best performing companies, Top 100 best working places in Vietnam, Asian best flight attendant wardrobe...

Vietjet's continuous and sustainable development in the past few years and business results exceeding the 2018 plan continue to bring values, efficiency to investors, create momentum to fulfill the mission of offering flying opportunities to everyone, becoming the regional and international airline.