05:28 (GMT +7) - Saturday 25/11/2017

BUSINESS SPOTLIGHT

Vietjet's 1H revenue and profit increase

Released at: 15:49, 27/07/2017 BUSINESS SPOTLIGHT

Vietjet's 1H revenue and profit increase

Photo: Vietjet

Carrier accomplishes 54% of annual profit target upon receiving five brand-new aircraft from Airbus and five wet-leased aircraft together with launching a series of international routes and optimizing solutions efficiently.

by Doanh Doanh

Vietjet Air (HoSE code VJC) has released its unaudited revenue and profit results for the first half of 2017, both of which increased dramatically year-on-year and exceeded targets.

Revenue from aviation services stood at VND10.743 trillion ($473 million), an increase of 45.1 per cent year-on-year and representing 108 per cent of the six-month plan. Pre-tax profit from aviation services reached VND1.09 trillion ($48 million), an increase of 46 per cent year-on-year.

The airline operated five brand-new A321 aircraft and five wet-leased aircraft in the first half. The ten additional aircraft supported the airline’s transportation capabilities during the peak travel season and especially in opening new international routes.

As at June, Vietjet had 21,578 points-of-sales covering air ticket distribution and consumer services, an increase of 38 per cent year-on-year.

It optimized operational costs, with the Cost of Available Seat-Kilometer excluding fuel (CASK ex-fuel) continuing to decrease, to 2.23 cents compared to 2.43 cents in the same period last year. Revenue passenger kilometer (RPK) increased from 4.29 cents to 4.42 cents.

Vietjet operated on 73 domestic and international routes as at June, an increase of 37.7 per cent since June 2016 and representing 110.6 per cent of the year’s target. It conducted 49,151 flights with a technical reliability rate of 99.55 per cent and on-time performance rate of 85.7 per cent. Other rates in operational safety, technical operations, and ground operations have continually been among the highest in the Asia-Pacific region.

These positive operations safety and service results have entailed a 30 per cent decrease in aircraft insurance costs by international standards against 2016. Nearly 8.27 million passengers flew on Vietjet in the first half of the year, an increase of 22.4 per cent year-on-year with a load factor of 87.7 per cent.

Vietjet recently confirmed the date it would pay a cash dividend rate of 20 per cent and will soon finalize bonus shares of 40 per cent, upon receiving approval from the State Securities Commission.

On July 25, Vietjet and Japan Airlines (JAL) reached a formal comprehensive partnership agreement with the aim of improving customer convenience and the quality of operations and services while enhancing the corporate value of both companies.

Vietjet welcomed many organizations, investors and analysts in Vietnam and overseas during the first half to study and take part in international investment conferences. The airline saw positive feedback and interest in the company from domestic and international investors.

The airline is the first in Vietnam to operate as a new-age airline with low-cost, diversified services to meet customer demands. It provides not only transport services but also uses the latest e-commerce technologies to offer various products and services to customers.

It currently boasts a fleet of 48 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 67 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, Malaysia, China, Myanmar and Cambodia. It has carried nearly 40 million passengers to date.

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