Vietjet contributes VND4,350 billion to State budget in 2022
(Vietjet, HoChiMinh city, April 11, 2023) - Vietjet Aviation Joint Stock Company (HoSE: VJC) has released its audited financial statements 2022, reporting a whole payment of VND4,350 billion (approx. US$186.4 million) to the State budget despite consolidated losses.
In 2022, air fuel
costs surged by more than 60% with an average price of US$130/barrel while
technical and aircraft engine expenditure increased by over 20% due to
disruptions in the global supply chain and labour shortage. Such made a grave
impact on Vietjet’s operating costs, resulting in a business performance below
expectation. Vietjet, however, always makes flight safety its top priority with
the technical reliability rate of 99.06%.
The audited
consolidated revenue was reported at VND40,141 billion (approx. US$1.72 billion),
of which, air transport revenue was VND33,077 billion (approx. US$1.41 billion)
with an after-tax loss of VND2,261 billion (approx. US$96.88 million). The
numbers were hardly different to those in the compiled financial statements.
Striving to recover
from the Covid-19 pandemic, Vietjet in 2022 operated 116,000 flights with 20.5
million passengers on board on a network of 103 domestic and international
routes. Domestic transport was the main drive for recovery with more than
99,000 flights and 17.8 million passengers. Vietjet’s total flights and
passengers in 2022 hit 115% of the yearly target.
Long-term assets
were reported to increase by more than US$200 million. As of December 31, 2022,
Vietjet’s assets totaled over VND68,000 billion (approx. US$2.91 billion). Its
long-term debt-to-equity ratio stayed at 0.7 while the liquidity ratio was at
1.3 - all were considered good indicators in the aviation industry. The
airline’s payment to the State budget, including direct and indirect taxes,
fees and charges, in 2022 was VND4,350 billion (approx. US$186.46 million).
According to
preliminary business performance in Q1/2023, Vietjet has trumped challenges in
2022 and is expecting profit in air transport in the first quarter this year,
projecting positive results in the remaining quarters.
Vietjet in the first days of the year has welcomed another new member, a wide-body A330 aircraft, to its modern fleet, getting ready to explore further destinations in the region and the world. Vietjet on April 8 inaugurated the new route connecting Ho Chi Minh City and Melbourne (Australia) with an A330 aircraft, officially embarking its intercontinental commercial routes.
After the Covid-19
pandemic was put under control, the airline in 2022 immediately resumed its
entire domestic network and pioneered to launch new international routes to
India and Kazakhstan - brand new destinations and markets. It has promoted
trade between Vietnam and other countries, contributing to the economic
recovery post-pandemic.
Vietjet will open
more routes this April and June from Ho Chi Minh City to another two Australian
cities of Sydney and Brisbane. Governor-General of the Commonwealth of
Australia David Hurley has expressed his pleasure about Vietjet commencing
direct flights to Australia.
Since late 2022 to
early 2023, Vietjet has increased frequency on its entire network to meet the
travel demand at new year and during the Lunar New Year holiday. The airline
has run many thrilling sale campaigns together with new products and services
to serve the passengers during the April 30-May 1 holiday and the coming summer
vacation.
The positive operation and the likely profitability in Q1 indicate that Vietjet has overcome difficulties in 2022 when the country has just emerged out of the pandemic, and stepped into a period of bouncing back strongly post-pandemic.
In 2023, Vietjet eyes high revenue growth as the Chinese market has reopened while direct routes to new international markets like Australia, Europe and key ones like India and Kazakhstan have been added to the network. The airline has introduced the loyalty program Vietjet Skyjoy with several utilities, gifts and discounts for loyal customers, which is expected to worth billions of USD of commercial potential.
Vietjet also anticipates an increasing return of international tourists thanks to the expected easing visa policy including the implementation of e-visa and extending the length of visa-free stay in Vietnam, as well as the intensifying operation of highly potential international markets.