Vietjet Aviation Joint Stock Company has recorded its positive performance in Q1/2023, resulting from stable domestic flight operation and expansion of the international network. According to the Q1/2023 financial statements, Vietjet’s air transport revenue reached VND12,880 billion (approx. USD553 million) while the after-tax profit was VND168 billion (approx. USD 7.2 million), increased by 286% and 320% YoY respectively. Ancillary revenue, in particular, was reported at VND4,312 billion (approx. USD185 million), accounting for more than 33% of the total revenue.
The company’s consolidated revenue and after-tax profit were VND12,898 billion (approx. USD554 million) and VND173 billion (approx. USD 7.4 million) respectively. In the first three months of the year, Vietjet has safely operated 31,300 flights and transported nearly 5.4 million passengers, growing by 57% and 75% YoY respectively. The airline’s load factor averaged 85% while the technical reliability rate was 99.59%.
Vietjet’s air cargo volume in the 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. USD 2.96 billion) with the debt-to-equity ratio being at 1 while the liquidity ratio at 1.3, both were staying within the safe range of aviation industry. Vietjet has paid up to VND1,053 billion (approx. USD45 million) of direct and indirect taxes, fees, and charges to the State.
Such performance resulted from Vietjet’s proper business strategy in the context of a post-pandemic economy. In Q1/2023, the airline introduced 10 new routes (4 domestic and 6 international), bringing the total routes to 105 (55 domestic and 50 international).
Since early 2023, Vietjet has increased 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 has pioneered to launch 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, attracting investment and tourism to Vietnam.
Vietjet also focused to carry out programs to optimize and manage operation costs, which contributed to the positive performance in Q1/2023. Vietjet has set great targets towards better performance in the next quarters and the whole year, maintaining the market leader status. The airline also aims to grow strongly in the international market in 2023, to research and invest in high potential routes while pioneers to open new ones.
The airline expects to expand the fleet to 87 aircraft, operating 139,513 flights with 25.7 million passengers onboard in 2023. In addition to air service, Vietjet is eyeing to offer consumption services on an e-commerce platform with an absolute focus on technology programs to accelerate digital business, bringing the greatest satisfaction experiences to the customers. The newly-introduced Skyboss Business product on the A330 aircraft and the loyalty program SkyJoy both received positive feedbacks from a majority of passengers. The number of Skyboss Business passengers is gradually increasing, while SkyJoy has so far more than 3 million members.
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