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Vietjet posts record revenue and profit

Released at: 21:02, 03/04/2017

Vietjet posts record revenue and profit

Photo: Vietjet

Carrier's audited 2016 financial statements show success continues.

by Doanh Doanh

Vietjet Air (HOSE stock code VJC) has released its consolidated financial statements for 2016, audited by KPMG. Following an international standard initial public offering process (Reg-S), Vietjet made financial statements that meet Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS).

Vietjet had a successful 2016, with its highest ever revenue and profit since the commencement of commercial operations in 2011.

Revenue and after-tax profit were VND27.499 trillion ($1.2 billion) and VND2.496 trillion ($109.8 million), up 39 per cent and 113 per cent compared to 2015, respectively. Profit was increased post-audit by VND206 billion ($9 million) as cost of goods sold was adjusted down sharply to VND435 billion ($19 million).

The positive results were due to the airline’s continuously expanding its network as well as enhancing the exploitation of available routes, well-managing its operating costs with the application of advanced technology.

The company maintains operational quality management policies and safety standards in line with international standards and has become an official member of the International Air Transport Association (IATA), while most low-cost airlines have not yet met its rigorous standards. Technical reliability for the A320/321 fleet is 99.57 per cent, among the highest level for airlines in the Asia-Pacific region. On time performance was 83.6 per cent.

As at December 31, 2016, Vietjet’s total assets stood at VND20.063 trillion ($882 million), an increase of 67 per cent compared with 2015.  

On February 28, Vietjet listed 300 million shares on the Ho Chi Minh City Stock Exchange (HoSE) with a floor price of VND90,000 ($3.9) per share. Closed on March 31, after a month of listing, VJC shares had reached VND128,100 ($5.6) each, for growth of 42 per cent. Its shares were particularly favored by foreign investors, who net bought in each of the previous ten sessions.

Vietjet is the first airline in Vietnam to operate as a new-age airline with low-cost and 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.

The airline was named as one of the Top 500 Brands in Asia 2016 by global marketing research company Nielsen and “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies and tour operators in throughout Asia. The airline was also rated as one of the top three fastest-growing airline brands on Facebook in the world by Socialbakers.

It currently boasts a fleet of 45 aircraft, including A320s and A321s, and operates 350 flights each day. It has already opened 63 routes in Vietnam and across the region to international destinations in Thailand, Singapore, South Korea, Taiwan, Malaysia, China, and Myanmar and has carried nearly 35 million passengers to date.

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