Overcoming the challenging aircraft shortages in the aviation industry, Vietjet Aviation Joint Stock Company has reported outstanding business performance in Q1/2024, providing a strong boost for the entire year.
In Q1/2024, Vietjet’s air transport revenue was recorded at VND17.76 trillion (approx. US$701.13 million), while after-tax profit was VND520 billion (approx. US$20.5 million), increasing by 38% and 209% YoY respectively.The airline’s consolidated revenue and after-tax profit were VND17.79 trillion (approx. US$702.39 million) and VND539 billion (approx. US$21.27 million) respectively, growing by 38% and 212% YoY in the given order.
During the first three months of the year, Vietjet safely operated nearly 34,500 flights with more than 6.3 million passengers onboard. The airline’s average load factor rate reached 87%, and the technical reliability rate was 99.6%.
Advancing its strategy to expand internationally, Vietjet’s international passenger transport in Q1/2024 witnessed growth of more than 53% and 61% YoY in terms of numbers of flights and passengers respectively.
The airline has launched 15 new international and domestic routes over the span of three months, lifting its total operating routes to 140. Among the latest international routes announced and launched include Phu Quoc – Taipei (Taiwan, China), Ho Chi Minh City – Chengdu/Xi’an (China), and Vientiane (Laos), in addition to Hanoi to Hiroshima (Japan) and Sydney/Melbourne (Australia).
Additionlaly, Vietjet Aviation Joint Stock Company (HoSE: VJC) organized the General Meeting of Shareholders (GMS) 2024 on April 26, 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 growing and stable business performance. 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 airline operating between Vietnam and the five biggest cities of Australia while opening several routes to the Indian market, including 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 continues to invest in a modern, safe, and eco-friendly fleet. As of December 31, 2023, its fleet consisted of 105 aircraft, including wide-body A330s, helping optimize resources, save fuel, and achieve long-term sustainable development (ESG) goals.
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. Separate and consolidated revenue were reported at VND53.7 trillion (approx. US$2.16 billion) and VND58.3 trillion (approx. US$2.35 billion) respectively.
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.
Vietjet was also honored by the prestigious UK financial magazine International Finance as the “Best Low-Cost Airline” and “Best Finance Management – Aviation”.
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%.
Building on its growth momentum since the beginning of the year, Vietjet has set ambitious targets for the coming quarters and throughout 2024. In addition to maintaining its domestic market presence, the airline aims to further expand its international flight network, with plans to operate 142,000 flights and transport 27.4 million passengers in 2024.
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