17:37 (GMT +7) - Friday 22/03/2019

Business

Vietjet maintaining growth momentum

Released at: 21:35, 24/01/2019

Vietjet maintaining growth momentum

Photo: Vietjet

Carrier releases report on impressive business performance in 2018.

by Ngoc Lan

Vietjet Air’s revenue from core business increased 49 per cent in 2018, maintaining the momentum of previous years, according to a report released by the carrier on January 24.

Total revenue before auditing was VND52.4 trillion ($2.2 billion), up 24 per cent year-on-year and representing 103 per cent the plan set at the annual general meeting.

As at December 31, cash balance was VND7.161 trillion ($307.3 million). The debt-to-equity ratio is very low, at 0.04 times, while return on equity (ROE) was 37.6 per cent. The price-to-earnings (P/E) ratio was an attractive 11.5 times.

Vietjet operated 118,923 flights last year on 105 routes, including 39 domestic and 66 international routes, to destinations in Vietnam and also Japan, Hong Kong (China), Singapore, South Korea, Taiwan (China), Thailand, Myanmar, Malaysia, Cambodia, and China. Its aircraft also operated out of Dubai and Doha airports.

The load factor reached over 88.06 per cent, technical reliability was 99.64 per cent, and on-time performance (OTP) stood at 84.2 per cent.

Vietjet also took possession of new generation A321neo aircraft, which could save fuel costs by up to 16 per cent, contributing to lower operating costs in the coming years. Its fleet as at December 31 included 64 modern aircraft.

It conducted 231 training courses with 8,083 spots, including 96 on safety and security with 2,358 spots. At the beginning of November, on the occasion of the official visit by the French Prime Minister to Vietnam, Vietjet launched its Aviation Academy. This is an important milestone in Vietjet’s development to modernize training and education and enable the Academy to reach regional and international standards.

Vietjet also received many prestigious awards and recognition last year, including a Labor Medal and places in Vietnam’s top 50 listed companies and top 40 most valuable brands by Forbes magazine, Top 50 airlines for healthy financing and operations by AirFinance Journal, Top 50 largest taxpayers in Vietnam, 50 best performing companies, and Top 100 best working places in Vietnam, and was named Asia’s best flight attendant wardrobe.

The airline has plans to expand its flight network across the Asia-Pacific region and has signed contracts to buy new-generation aircraft.

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