Vietjet reports positive recovery and growth: audited H1 financial statements

(Vietjet, HoChiMinh city, August 31, 2022) - Vietjet Aviation Joint Stock Company (HoSE: VJC) has announced its audited half-year financial statements for 2022, reporting air transport revenue of VND14,898 billion (approx. US$640 million) and after-tax profit of VND80.33 billion (approx. US$3.45 million), which jumped by 197% and 135% YOY respectively and were both higher than the compiled financial statements’.

The airline’s consolidated revenue reached VND15,934.6 billion (approx. US$684.58 million) while the consolidated after-tax profit was VND145 billion (approx. US$6.22 million), both increasing by 111% and 19% YOY respectively. The consolidated revenue and profit were posted to be lower as a commercial aircraft transaction worth of VND275 billion (approx. US$11.81 million) was carried forward to the next accounting period.

As of June 30, 2022, Vietjet’s assets totaled nearly VND62,669 billion (approx. US$2.69 billion). Its debt-to-equity ratio stayed at 1.09 while the liquidity ratio was at 1.49 - all were considered good indicators in the aviation industry.

Vietjet’s posivitve performance for the first six months of 2022 was owing to a robust recovery in traveling demand, particularly in domestic routes which saw a 30% growth compared to the same period in the pre-pandemic 2019.

The airline has operated nearly 33,000 flights and carried 6 million passengers, leaping by 135% and 200% YOY respectively. The volume of cargo airlifted totaled more than 11,000 tons.

A pioneer in connecting Vietnam and India with 17 direct flight routes, Vietjet has brought a market of 1.4 billion people from Indian biggest cities to Vietnamese destinations like Hanoi, Ho Chi Minh City, Da Nang and Phu Quoc. The airline has also reached agreements with Boeing and Airbus in aircraft deal reconstruction, promising further support from the aircraft manufacturers and investment projects in Vietnam in services, training and manufacturing.

Bearing the customer-centric mindset, Vietjet has constantly expanded its network with convenient departure windows and affordable tickets for the passengers. The airline has received the international fintech award of the year for its “Flight first, Pay later” services as well as being honored as the “Value Airline of the Year” and the ‘Top 10 Best Low-cost Airlines” for 2022.

Vietjet has made remarkable investments into its fleet and system upgrade and technology application while offering a range of pre-and-in-flight services to meet the demand of traveling fast and conveniently of the passengers.

Vietjet has planned to continue its stringent cost reduction measures and expedite digitalization projects to optimize operation costs. A reduction of environmental protection tax on jet fuel down from VND3,000 to VND1,000 (approx. US12-4 cents) per liter is set to help airlines accelerate their recovery and development amid a global oil price surge.

In the meantime, the Ministry of Finance and the Ministry of Transport are considering a fuel surcharge policy which is applicable to airlines in the case of an abrupt oil price rise.

According to the International Air Transport Association (IATA), the domestic aviation sector will bounce back to 93% in 2022, with Vietnam’s in particular recovering by 96% and grows strongly in 2023. Resuming several international flights, Vietjet is set to further expand its business to contribute to the aviation industry and the economic recovery and development of localities and the country post-pandemic.