Vietjet reports VND168 billion (approx. RM32 million) profit in Q1/2023, amidst solid growth

Vietjet Aviation Joint Stock Company (HoSE: VJC) records positive performance in Q1/2023, an outcome of a stable domestic flight operation and expansion of the airline’s international network.

As recorded in the Q1/2023 financial statements, Vietjet’s air transport revenue reached VND12,880 billion (approx. RM2.4 billion) while the after-tax profit was VND168 billion (approx. RM31.8 million), an increase of 286% and 320% YoY respectively. Ancillary revenue, in particular, was reported at VND4,312 billion (approx. RM816 million), accounting for more than 33% of the total revenue.

The company’s consolidated revenue and after-tax profit was VND12,898 billion (approx. RM2.4 billion) and VND173 billion (approx. RM32.7 million) respectively.

In the first three months of the year, Vietjet safely operated 31,300 flights and transported nearly 5.4 million passengers, a growth of 57% and 75% YoY respectively. Meanwhile, the airline’s load factor averaged 85% while the technical reliability rate was 99.59%.

Vietjet’s air cargo volume in the first quarter totaled more than 14,800 tons, up by 20% YoY.

International passenger transport remained the highlight as it accounted for nearly 45% of the total passenger transport revenue and 30% of total flight and passenger numbers.

As of March 31, 2023, the airline’s assets totaled more than VND69,200 billion (approx. RM13.1 billion) with the debt-to-equity ratio being at 1, while the liquidity ratio at 1.3, both remained within the safe range of aviation industry standards.

Vietjet has paid up to VND1,053 billion (approx. RM199.3 million) of direct and indirect taxes, fees and charges to the State.

This performance is a result of Vietjet’s sound business strategy in the context of a post-pandemic economy. In Q1/2023, the airline introduced 10 new routes, of which 4 are domestic and 6 are international, thereby bringing the airline’s total routes to 105 (55 domestic and 50 international).

Since early 2023, Vietjet has increased the frequency of flights connecting Hanoi and HCM City with other localities to meet the travel demand for family reunion, as well as added more flights to tourism destinations.

The airline also pioneered new international routes from Vietnam to India, Kazakhstan and Australia. It also added new destinations in high-performing markets like Japan, South Korea and Thailand, thereby attracting investment and tourism to Vietnam.

Vietjet also focused on carrying out programs to optimize and manage operation costs, which contributed to the positive performance in Q1/2023.

Vietjet has set its sights on maintaining its position as a market leader and targets to achieve even better performance in the next quarters and the whole year. The airline also aims to grow strongly in the international market this year through research and investing in highly potential routes, while pioneering the opening of new routes.

The airline expects to expand its fleet to 87 aircraft, operating 139,513 flights with 25.7 million passengers onboard in 2023.

In addition to air service, Vietjet also has its sights set on offering consumption services on an e-commerce platform with an absolute focus on technology programs to accelerate digital business, bringing greater satisfactory experiences to customers. The newly-introduced Skyboss Business product on the A330 aircraft and the loyalty program SkyJoy both received positive feedback from a majority of passengers. The number of Skyboss Business passengers is gradually increasing, while SkyJoy has so far over 3 million members.

*Based on exchange rate of 1.00000 VND = 0.00019 MYR