Vietjet robustly expands international network, eyeing 27 million passengers and 25% dividend payout by cash and stock in 2024

(Vietjet, HoChiMinh city, April 26, 2024) - Vietjet Aviation Joint Stock Company (HoSE: VJC) on April 26, 2024 organized the General Meeting of Shareholders (GMS) 2024 where the annual business plan was approved. It aims to maintain domestic market share, promoting cooperation and joint ventures to expand international flight routes.

Leading international expansion

The financial statements for 2023 showed that despite the challenging economic situations in Vietnam and the world with volatile exchange rates and high oil prices, Vietjet still reported a growing and stable business performance. The international network was expanded robustly, boosting revenue and ensuring a positive balance sheet with financial indicators increasing by multiple times.

Vietjet safely operated 133,000 flights with 25.3 million passengers onboard – a surge of 183% YoY, of whom more than 7.6 million were flying internationally.

In 2023, Vietjet launched 33 new domestic and international routes. It became the largest airlines operating between Vietnam and 5 biggest cities of Australia while having opened several routes to the Indian market and in particular the direct flight connecting Hanoi and Jakarta (Indonesia) which had been off the radar of any airlines for decades. Vietjet also increased its flight frequency to Northeast Asian countries, becoming the airline with the highest frequency from Vietnam to cities in Japan and South Korea.

Vietjet's international flight routes have contributed greatly to promoting diplomatic activities and development of economic ties, trade, investment, and tourism between countries.

Vietjet continues to invest in a modern, safe and eco-friendly fleet. As of December 31, 2023, its fleet consisted of 105 aircraft, including the wide-body A330s, helping optimize resources, save fuel and achieve long-term sustainable development (ESG) goals.

Starting the journey of reducing CO2 emissions over 10 years ago, by 2023, Vietjet's aircraft fleet has grown significantly, making a crucial contribution to the company's success by optimizing resources, saving fuel by up to 15-20% while protecting the environment and developing sustainably through green technology researches.

ESG will continue to be the airline's strategic goal in the long term. It also plays a key role for Vietjet's success by helping optimize resources, save fuel, and reduce CO2 emissions through its new and modern fleet.

Focusing on human resource development, Vietjet Aviation Academy (VJAA) trained over 97,000 students through 6,300 courses. It also installed its third flight simulator, maintaining its position as a top-notch regional pilot training center.

Outstanding business and financial performances

Effectively operating the current flight network while opening new international routes have resulted in impressive business performance for Vietjet in 2023. Seperate and consolidated revenue were reported at VND53.7 trillion (approx. US$2.16 billion) and VND58.3 trillion (approx. US$2.35 billion) respectively.

As of December 31, 2023, Vietjet's total assets totaled more than VND86.9 trillion (approx. US$3.5 billion). The cash and cash equivalents balance was reported at VND5,051 billion (approx. US$203.62 million), more than 2.7 times higher YoY, ensuring the airline's financial capacity.

The airline was also among those with best credit ratings according to guidelines by the Ministry of Finance. It has received the highest credit rating (VnBBB-) among Vietnamese corporations.

In 2023, Vietjet paid approximately VND5,200 billion (approx. US$205.21 million) of direct and indirect taxes and fees.

By the end of Q1/2024, Vietjet safely operated nearly 34,500 flights, transporting more than 6.3 million passengers. Vietjet recorded consolidated revenue and after-tax profits of VND17,792 billion (approx. US$702 million) and VND539 billion (approx. US$21.16 million) respectively. It paid VND1,770 billion (approx. US$69.48 million) in taxes and fees in Q1/2024.

Embracing a corporate culture of community support, Vietjet kept flying free flights for underprivileged students, workers, and laborers. It also supported charity programs in remote areas, granting gifts to orphans at the SOS Children's Villages, and awarding tens of thousands of scholarships to poor, honourable students.

The business performance also justified several awards that Vietjet received from AirlineRatings, the world's leading airline magazine, in 2023. It was hailed as the Top 20 Safest Low-Cost Airlines, the World’s Best Low-Cost Airline Onboard Hospitality, and the Best Ultra Low-Cost Airline.

Tạp chí tài chính cao cấp của Vương Quốc Anh International Finance vinh danh Vietjet  là “Hãng hàng không chi phí thấp tốt nhất” và “Hãng hàng không quản trị tài chính tốt nhất”.

Vietjet was also honored by the prestigious UK financial magazine International Finance  as the "Best Low-Cost Airline" and "Best Finance Management - Aviation".

High growth targets in 2024

Following the achievements in 2023, Vietjet pioneers in connecting Vietnam with the world in 2024 with the slogan “ Real deal to new me”.  Vietjet has announced and inaugurated new international routes including Phu Quoc - Taipei (Taiwan, China), Ho Chi Minh City - Chengdu, Xi’an (China) and Ho Chi Minh City - Vientiane (Laos), and routes from Hanoi to Hiroshima (Japan), Sydney, and Melbourne (Australia).

Meanwhile, Vietjet continues to maintain connection between localities, driving recovery and economic development across regions.

Utilizing advanced digital technology and comprehensive aviation service ecosystem, Vietjet has constantly introduced new and innovative products, enhancing the customer experience to bring joy and satisfaction to all passengers.

Regarding the 2024 annual plan, the GMS is eyeing air transport revenue and consolidated revenue to surpass VND59,000 billion (approx. US$2.32 billion) and VND65,500 billion (approx. US$2.57 billion) respectively, increasing by 10% and 12.4% YoY in the given order. Vietjet is expected to safely operate 142.000 flights with more than 27.4 million passengers onboard.

The GMS also approved the 2024 profit distribution plan, in which dividends and advanced dividends will be paid in cash and stock at a maximum ratio of 25%.

The GMS also voted on various important issues targeting at promoting growth while responding flexibly to market changes, leading market trends, and creating new opportunities. Vietjet, with its leading market share, will maintain stability of the domestic market and at the same time expanding its flight network worldwide to new destinations in South Asia, Central Asia, Australia, and towards Europe.