Vietjet Aviation Joint Stock Company HoSE: (VJC) recorded a positive performance in Q1/2023 with stable operations in its domestic market and the opening of new international routes to meet trade demand between Vietnam and other countries.
Revenue and profit increase YoY
According to the Q1/2023 financial statements, Vietjet’s air transport revenue reached VND12,880 billion (approx. US$553 million) while the after-tax profit was VND168 billion (approx. US$7.2 million), representing an increase of 286% and 320% YoY respectively. Ancillary revenue was reported at VND4,312 billion (approx. US$185 million), accounting for more than 33% of the total revenue.
The company’s consolidated revenue and after-tax profit was VND12,898 billion (approx. US$554 million) and VND173 billion (approx. US$7.4 million) respectively.
Vietjet safely operated 31,300 flights and transported nearly 5.4 million passengers in Q1/2023, 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 tonnes, 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 flight and passenger numbers.
As of 31 March 2023, the airline’s assets totaled more than VND69,200 billion (approx. US$2.96 billion) with the debt-to-equity ratio being at 1 while the liquidity ratio at 1.3, both staying within a safe range for the aviation industry.
Vietjet has paid up to VND1,053 billion (approx. US$45 million) of direct and indirect taxes, fees and charges to the State.
Focus on international market
The performance resulted from Vietjet’s business strategy in a post-pandemic economy. In Q1/2023, the airline launched 10 new routes (4 domestic and 6 international), bringing the total routes to 105 (55 domestic and 50 international).
Since early 2023, Vietjet increased frequency of flights connecting Hanoi and Ho Chi Minh City with other localities to meet travel demand for family reunion, as well as added more flights to tourism destinations.
The airline has launched 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.
Believing that 2023 will be a year of strong growth for aviation and tourism industries, Vietjet has set ambitious targets to grow performance throughout the year.
Apart from operating stably in the domestic market and maintaining its market leader status, Vietjet aims to grow strongly in the international market in 2023. This includes researching and investing in high potential routes and pioneering new routes.
The airline expects to expand its 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 a focus on technology programs to accelerate digital business, bringing positive experiences to customers.
New services
During the first quarter, Vietjet has constantly introduced new products and services to improve customer experiences, including the SkyBoss Business class and loyalty program SkyJoy, with both receiving positive passenger feedback. SkyBoss Business passengers is gradually increasing and SkyJoy has more than 3 million members.
Vietjet also focused on carrying out programs to optimise and manage operational costs, which contributed to the positive performance in Q1/2023.
