23:32 (GMT +7) - Friday 16/11/2018

Business

Vietjet's Q3 air revenue up 45%

Released at: 15:16, 31/10/2018

Vietjet's Q3 air revenue up 45%

Photo: Vietjet

Carrier expects to exceed revenue and profit targets for 2018.

by Ngoc Lan

Thanks to adding to its new, modern fleet along with the opening of new international routes and flexible seat capacity management in the low season, Vietjet Air’s air transport revenue in the third quarter reached VND8.901 trillion ($207.5 million), an increase of 45 per cent year-on-year, according to the carrier’s latest report.

The report noted that total revenue stood at approximately VND12.713 trillion ($296.4 million), an increase of 105 per cent year-on-year and thanks to growth in air transport, ancillary products and services, and sale and leaseback revenue.

Total profit before tax in the third quarter reached VND1.709 trillion ($39.8 million), a 59 per cent increase year-on-year.

Air transport profit was VND1.094 trillion ($25.4 million), representing 111 per cent of profit in the same period last year.

Ancillary products and services also grew dramatically, with VND2.177 trillion ($50.7 million) in revenue, an increase of 55 per cent year-on-year.

The operation of new-age A320/A321neo aircraft, which can save on fuel costs by up to 16 per cent, in addition to international flight network expansion and fuel prices in foreign markets being lower than domestic prices by around 30 per cent (due to the tax and fee policies of foreign countries), helped Vietjet cut its cost per available seat kilometer (CASK). Advanced programs in operations will result in saving on operational costs ex-fuel by around 5 per cent.

Vietjet received three more new aircraft in the third quarter, bringing the total to 65.

In the first nine months of 2018, it saw flight numbers rise to 89,690, an increase of 22 per cent, transporting 16,882 million passengers and retaining its leading position in the domestic market. The ratio of international revenue exceeded 50 per cent of total revenue; higher than planned.

Revenue has reached a total of VND33.934 trillion ($791 million) so far this year, while profit before tax stands at VND3.681 trillion ($85.7 million), up 30 per cent year-on-year.

Transport revenue was VND25.413 billion ($592.2 million), up 50 per cent, and profit after tax in air transport was VND2.280 trillion ($53.1 million), or 76 per cent of the annual plan.

With oil prices fluctuating, air transport revenue came from sound cost management, including fuel cost.

On-time performance stood at 83.5 per cent, while technical reliability was 99.66 per cent, with safety performance in flights and ground operation indicators being among the regional leaders.

Vietjet operates 103 routes, including 39 domestic and 64 international, covering destinations in Vietnam as well as international destinations in Japan, China, Hong Kong, Singapore, South Korea, Taiwan, Thailand, Myanmar, Malaysia, and Cambodia.

With positive business results in the first nine months, Vietjet expects to exceed its planned revenue and profit in the year as a whole.

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