Vietjet
reports profit and expands international flight network in Q3/2023
(Vietjet, HoChiMinh city, October 31, 2023) - Steering towards green and sustainable development with extensive international network, Vietjet Aviation Joint Stock Company (HoSE: VJC) has reported impressive performance over the first 9 months of 2023.
In Q3/2023, Vietjet
safely operated 36,000 flights and transported 6.8 million passengers including
2.3 million international travelers – an increase by 10% over the third quarter
of the pre-pandemic 2019 and up to 127% YoY.
During the first nine
months of 2023, Vietnam welcomed 23.7 million international passengers through
its airports, skyrocketing by 267% YoY. In particular, Vietnamese airlines
carried 11.5 million travelers of which 51% or 5.9 million flew with Vietjet,
greatly supporting inbound tourism and international investment.
Vietjet's fleet
consists of 103 aircraft, including 18 operated by Thai Vietjet and 2 brand new
aircraft being on delivery. The airline has reported a relatively high average
seat utilization rate of over 85% and a technical reliability rate of 99.72%.
The total transported cargo volume reached 20,300 tones, growing by 76% YoY. Vietjet accounted for 23% of the cargo market share among Vietnamese airlines.
While meeting the
demand for travel to popular destinations abroad, Vietjet's international
routes have contributed to the bilateral development of tourism, trade and
investment, offering support to the economic recovery. The airline, in Q3/2023,
opened seven new international routes, bringing the total number of routes to
125 (45 domestic and 80 international routes). It is the first airline to have
flights connecting Vietnam with the five largest cities in Australia, including
Perth, Adelaide, Brisbane, Melbourne, and Sydney.
Vietjet’s separate and
consolidated revenues were reported at VND13.548 trillion (approx. US$551.38
milion) and VND14.235 trillion (approx. US$579.34 million) respectively in
Q3/2023, increasing by 32% and 23% YoY. Separate and consolidated after-tax
profits reached VND579 billion (approx. US$23.58 million) and VND55 billion
(approx. US$2.23 million) respectively, up by 175% and 30% YoY.
Vietjet’s international
passenger transport continued to witness rapid growth, increasing by 201% YoY.
It accounted for more than 57% of the total passenger revenue and 35% of the
total number of flights and passengers.
Vietjet also focused
on ancillary and cargo revenue, which had relatively high profit margins. Their
revenue, which reached VND5,029 billion (approx. US$204.87 million) in total,
accounted for 40% of the airline’s total air transport-related revenue and grew
by 26% YoY and 77% over Q3/2019’s.
As of September 30,
2023, Vietjet's total assets reached over VND76,500 billion (approx. US$3.11
billion). The debt-to-equity ratio stood at 1.5 times while the liquidity ratio
was 1.4 times, resting within safe levels of the aviation industry.
Vietjet continues to
play a leading role in driving the economy, commerce, and tourism. It is a
reliable strategic partner for reputable organizations worldwide.
Its cash and cash
equivalents balance as of September 30, 2023 was recorded at VND2,077 billion
(approx. US$84.36 million). Such plus the working capital guarantee the
company's immediate solvency.
Vietjet, in the first
nine months of 2023, has paid nearly VND3,750 billion (approx. US$152.6
million) of direct and indirect taxes and fees.
During the official visit of the US President to Vietnam, Vietjet signed an agreement with Boeing on the delivery of 200 737 MAX aircraft worth of US$25 billion in the next five years. It also reached an agreement with Carlyle Aviation for aircraft financing worth US$550 million.
With a sustainable
business development strategy and remarkable growth post-pandemic, Vietjet has
attracted the attention of many local and foreign investors. In Q3/2023,
Vietjet reached preliminary agreements with three Vietnam-based institutional
investors committing to invest US$100 million. They will enhance the airline's
financial capacity from equity capital to meet the needs of growth, investment,
network expansion, and fleet expansion. The investment transactions are
expected to be completed in the fourth quarter of 2023.
The airline, with
stable operations and development, has been upgraded to VnBBB- credit rating
from VnBB+ with a stable outlook by Saigon Ratings, Vietnam’s first independent
credit rating agency.
With a strategy to
build the aviation human resources of international standards, Vietjet has also
invested in infrastructure upgrade and developing a pool of trainers at the
Vietjet Aviation Academy (VJAA). In September 2023, VJAA officially signed a
cooperation agreement and became a training partner of the International Air
Transport Association (IATA).
The airline has also
received numerous international and domestic awards, including "Asia's
Leading Airline for Customer Experience" by the World Travel Awards,
"Top 100 Most Valuable Brands in Vietnam," and "Top 10 Strong
Brands for Sustainable Development 2023." Meanwhile, Vietjet SkyJoy was
the “New Innovative Product” at the Better Choice Awards.
Utilizing advanced
digital technology and a comprehensive aviation service ecosystem, Vietjet has
constantly introduced new and innovative products including the Sky Care travel
insurance program, Deluxe class with superior amenities, and the "Fly now,
Pay later" financial solution that supports flexible airfare payment.
The SkyJoy program,
dedicated for Vietjet's loyal customers, allows them to redeem rewards with
over 250 brands, exchange tickets, and enjoy attractive airfares. The program
has had ten million members in the third quarter of 2023.
While still committing
to its mission of realizing the "flying dream" for millions of
Vietnamese and international travelers, Vietjet has been all in for
environmental and community responsibilities in each locality where it operates.
In October 2023, Vietjet launched the Fly Green fundraising program with the
meaningful message of "Every red ticket for one green planet”.
Accordingly, the airline contributes VND5,000 (approx. US 20 cents) from each
ticket sold to the fund to sponsor environmental protection programs.