Vietjet reported Q1 profit of over VND1,480 billion, air transport revenue and profit grew strongly

Accordingly, the revenue stood at VND12,560 billion, an increase of 146% year on year thanks to the growth in passenger air transport, ancillary and sale & leaseback revenue. Thanks to the fleet expansion along with the opening of new international routes, the air transport revenue reached VND6,035 billion, an increase of 52% year on year and 10% higher than the company’s target. This increased Vietjet’s core business profit by 74% year on year to nearly VND737 billion. Ancillary revenue also increased by VND1,825 billion, an increment of 64% year on year.

In the first quarter of 2018, Vietjet operated 28,830 safe flights with the technical reliability of 99.7%, with the safety performance indicators of flight as well as ground operation amongst the top in the region. The on-time performance in the first quarter stood at 83.4%. In Q1, Vietjet announced its plans to open international routes to India and Australia in line with the international flight network expansion strategy after achieving full coverage in the domestic. 

Recently, Vietjet won the regional top fastest growing airline awarded by Changi Airport. 

The positive results in revenue growth contributed significantly to the company’s gross profit of  VND1,810 billion, an 135% increase year on year, whilst at the same time, the sales and management costs increased at a lower rate compared to the revenue growth.

Therefore, Vietjet’s profit before tax in this quarter stood at VND1,480 billion, an increase of 254% compared to Q1 2017. After-tax profit of the parent company’s shareholders stood at VND1,366 billion, an 263% increase. Earnings per share in this quarter was VND3,026, one of the highest EPS in the stock market. 

Compared to the target of VND50,970 billion in revenue and VND5,806 billion in profit before tax for 2018, the Q1 results achieved 25.5% of the year’s target.

As of March 31st, 2018, Vietjet’s undistributed profit after tax was VND6,724 billion. The company will pay a cash dividend of 10% on May 25th to its shareholders and on its way to finalize  necessary procedures at the State Securities Commission of Vietnam to settle the remaining 20% dividend of 2017 by shares. Earlier last week at the 2018 General Shareholders Meeting, the shareholders also agreed with the plan to pay 50% dividends in 2018.