Vietjet glides through the first half of 2022 with flying colours

It was off to a flying start in the first half and second quarter of 2022 for Vietjet as its business performance soared high into the skies. Based on its performance report by Vietjet Aviation Joint Stock Company (HoSE: VJC), the company recorded an after-tax profit of VND76 billion (approx. RM14.5 million), while its consolidated profit stood at VND 426 billion (RM81.3 million) for the first half of 2022.

Vietjet’s growth can be seen in the second quarter of 2022, where Vietjet’s total air transport revenue reached VND11,355 billion (approx. RM2,166 million). This is a 15% increase when compared against pre-pandemic times during the same period in 2019, with its after-tax profit standing at VND36 billion (approx. RM6.9 million). Its domestic revenue on the other hand jumped to over 30% more as compared to the same period in 2019, with 53 domestic services.

Meanwhile, Vietjet’s consolidated revenue stood at VND11,590 billion (approx. RM2,211 million) and consolidated after-tax profit in Q2 was reported at VND181 billion (approx. RM34.5 million). As for the first half of 2022, the airline’s air transport revenue and its consolidated revenue reached VND14,696 billion (approx. RM2,804 million) and VND16,112 billion (approx. RM3,074 million) respectively, both charting higher than pre-pandemic levels in 2019.

This year alone, Vietjet has operated a total of 52,500 flights and served 9 million passengers onboard, with the number of flights increased by 8% as compared with the same period in 2019. In the second quarter, Vietjet operated about 33,000 flights and served 6 million passengers, while the cargo volume reached over 11,000 tonnes.

Aside from its remarkable business record, Vietjet also made a name for itself as the pioneer airline to have an extensive network of 17 direct routes between Vietnam and India – a market of over 1.4 billion people. These routes are namely Delhi, Mumbai, Ahmedabad, Hyderabad and Bangalore. In addition, Vietjet also inaugurated new routes from Ho Chi Minh City and Da Nang to Busan in South Korea, from Hanoi to Nagoya and Fukuoka, Japan, among others.

To keep up with the times and fast-moving technological innovations, for the first time ever, Vietjet also brought the new generation, modern wide-body A330 aircraft into operation. It is equipped with noise control technology and is known to deliver a safer and more comfortable flight experience to the passengers, while reducing the take-off and landing time in operating airports.

Of Sky-High Awards, Partnerships and Top-Notch Performance
Vietjet’s “Fly first, Pay later” service was recently awarded the Best New Fintech Product 2022 by The Global Economics Times, a prestigious magazine in the UK. It was hailed for not only offering financial support but also for its meaningful socio-economic grounds. This service, that was introduced to help customers reduce their financial burdens, was lauded along with its brand new website and mobile application platforms.

Meanwhile, the airline was also hailed ‘Value Airline of the Year’ and ‘Top 10 Best Low-cost Airlines” for 2022 by AirlineRatings, a renowned airline rating website.

In addition to these achievements, the first half of 2022 also saw Vietjet reaching an agreement with Boeing, affirming the airline’s commitment to purchasing 200 Boeing 737 aircrafts at the Farnborough Airshow hosted in the U.K last month. This partnership also further strengthened the bilateral commerce and trade between Vietnam and the U.S.

Aside from this, the airline has also passed the ISO27001 Information Security certification reassessment by the German TUV NOR, meeting all criteria of the Information Security Management ISO27001:2013.

To keep up with its growing flight networks, services and new aircrafts, the Vietjet Aviation Academy (VJAA) has opened more than 650 courses for nearly 15,000 trainees of pilots, cabin crew, flight dispatchers, flight engineers and ground service officers. It has since cooperated with major domestic and international partners to kick off elementary pilot training programs.

Despite facing the brunt of the unprecedented Covid-19 pandemic over the past two years, the airline has proved that it can overcome any challenge by managing to sustain favorable labor policy and several training courses for all employees.

Vietjet is set to continue its stringent cost reduction measures and push ahead with more digitalisation projects to optimise operation costs. It will also take advantage of the Government’s supporting policies including a 50% take-off and landing fee waiver and a reduction of environmental protection tax on jet fuel down to VND1,000 (approx. RM0.19 cents) per litter.

Despite having a revenue breakthrough in the second quarter and first half of 2022, the after-tax consolidated profit was VND426 billion (approx. RM81 million), meeting only about 85.2% percent of the airline’s target due to surging oil prices.

This year, Vietjet has paid a total of VND2,300 billion (approx. RM 439 million) to the government including taxes, indirect and direct fees for the first half of 2022.

For the remainder of 2022, the airline aims to accelerate its post-pandemic recovery and work hand in hand with its country and government to work towards economic and tourism growth.