Vietjet expands international network, eyeing to become digital and consumption airline

(Vietjet, HoChiMinh city, April 26, 2023) - On April 26, 2023, Vietjet Aviation Joint Stock Company (HoSE: VJC) has successfully organized the General Meeting of Shareholders (GMS) 2023.

It was widely acknowledged at the meeting that despite huge challenges of the economy in general and the domestic and global aviation industry post-pandemic, Vietjet has stayed on its feet to overcome obstacles and ensure growth. It has managed to maintain good balance sheet, creating a key foundation for sustainable development in 2023 and beyond.

By the end of 2022, Vietjet has operated more than 116,261 flights (up by 186% YoY) and transporting 20.5 million passengers (up by 283% YoY), leading the domestic market in terms of passenger volume. Vietjet has also brought its widebody Airbus A330 fleet into operation to effectively fly long-range routes to Kazakhstan, India and Australia.

The airlines has successfully worked on the tablet check-in project, helping ground operation staff to flexibly process check-in for the passengers, as well as has integrated HD Insurance and Galaxy Pay services to the system to offer more options to the passengers.

Vietjet has lanched the brand new loyalty program SkyJoy with endless rewards from redeeming Vietjet tickets together with the in-flight POS payment system for ancillary goods.

The 2022 audited financial statements reported that Vietjet’s consolidated revenue reached more than VND40,142 billion (approx. US$1.71 billion) (up by 212% YoY).

The long-term assets increased by over US$200 million of worth. The airline’s total assets were worth of VND68,036 billion (approx. US$2.91 billion) with the debt to equity rate at nearly 1.3 which was considered good in the aviation industry.

The direct and indirect taxes, fees and charges payment to the State budget totaled VND4,350 billion (approx. US$186.3 million).

Transport deputy minister Le Anh Tuan highly regarded Vietjet’s performance in 2022, of which it accounted for 40% of domestic passenger transport with a high load factor rate (85% on average). Mr. Le Anh Tuan looked forward to Vietjet’s further efforts to achieve great success in 2023.

Regarding operation safety, Civil Aviation Authority of Vietnam deputy head Ho Minh Tan affirmed that Vietjet’s operations have ensured absolute safety for years. “The Civil Aviation Authority of Vietnam acknowledges Vietjet as an airline having great leap in aviation safety. I wish the meeting will continue to orientate growth and ensure the mission of paving the sky-connecting the world,” Mr. Tan said.

The GMS 2023 has voted to pass 9 proposals on development strategies for 2023 and beyond. It has also elected a new member to the Board of Directors, bringing the total members to 9.

Regarding business plan in 2023, the GMS has set the targets of maintaining the market leader position in terms of passenger volume and efficiency; reaching agreements with aircraft manufacturers Airbus and Boeing to ensure on-time delivery; expanding business activities in ground services, training services and digital business; and optimizing operations and financial solutions to cut costs while improve efficiciency.

The GMS has also agreed on the goals of making Vietjet a leading airline in digital technology; raising capital to meet the development demand; and prioritizing on asset growth and financial capability improvement, laying out the foundation for a fruitful and sustainable development of Vietjet. 

The GMS has approved the fleet expansion plan to 87 aircraft (including 9 widebody Airbus A330 aircraft), expecting to  operate 139,513 flights with 25.7 million passengers onboard.

The targeted consolidated revenue is over VND50,178 billion (approx. US$2.14 billion) while after-tax profit is set at VND1,000 billion (US$42.8 million).

The GMS 2023 has wrapped up with shareholders expressing optimism and trust on the leadership of Vietjet’s Board of Directors and Board of Management to successfully pull off the mission “Pave the sky-Connect the world”.