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In an impressive display of resilience and strategic growth, Vietjet Aviation Joint Stock Company (HOSE: VJC) has reported a stellar performance for the first half of 2024. The Vietnamese new-age carrier has not only matched but significantly surpassed its pre-pandemic operations, marking a robust 15% increase in revenue and a remarkable 21% profit over its annual target.

Record-Breaking Financial Performance

Vietjet’s financial report for H1/2024 reveals unprecedented figures, with total revenue reaching VND34.016 trillion (approximately USD 1.35 billion) and a consolidated pre-tax profit of VND1.311 trillion (approximately USD 52.22 million). These figures represent a 15% and 433% increase year-on-year (YoY). This surge is a testament to the airline’s strategic resilience and robust operational management.

In Q2/2024 alone, Vietjet recorded air transport revenue VND15.128 trillion (approximately USD 601.68 million), marking a 23% YoY increase. The pre-tax profit for this quarter was VND517 billion (approximately USD 20.57 million), an astonishing 683% YoY growth. These impressive figures contributed to a cumulative air transport revenue of VND32.893 trillion (approximately USD 1.3 billion) for the first six months, up 31% YoY, with a pre-tax profit soaring to VND1.174 trillion (approximately USD 46.77 million), a 690% increase YoY.

Expanding Horizons

Vietjet’s aggressive international expansion strategy continues to yield positive results. The airline operates more than 149 routes, including 38 domestic and 111 international routes. Noteworthy additions include two new routes from Hanoi to Melbourne and Sydney, enhancing the number of routes between Vietnam and Australia to seven. These new routes significantly bolster bilateral travel, tourism, investment, trade, overseas study, and family visits, positioning Vietjet as the leading carrier between the two countries with 58 flights per week.

The airline has also expanded its footprint in Asia with new routes connecting Ho Chi Minh City to Xi’an, Phu Quoc to Taichung and Kaohsiung, and Ho Chi Minh City to Vientiane. Additionally, Vietjet is set to launch the Nha Trang-Daegu (South Korea) route in October 2024, further solidifying its position as the largest airline in routes connecting Vietnam and South Korea.

Sustainable Fleet Growth

Vietjet’s commitment to a modern, green fleet is evident in its operations. The airline currently operates more than 105 aircraft, including those of Vietjet Thailand. This fleet expansion is complemented by the airline’s focus on environmentally friendly operations and a modern transcontinental network. A significant highlight is the recent agreement with Airbus to acquire 20 new-generation wide-body A330neo (A330-900) aircraft, valued at USD 7.4 billion, signed at the Farnborough International Airshow 2024.

Investment in Human Capital

Vietjet’s vision of building an international standard aviation workforce is supported by the Vietjet Aviation Academy (VJAA), a certified training partner of the International Air Transport Association (IATA). In H1/2024, the VJAA trained over 43,000 students across 3,898 courses, including pilots and aircraft engineers. The academy’s third simulation cockpit, a key training asset, underscores Vietjet’s commitment to excellence in regional pilot training.

The airline has partnered with universities to provide career orientation and job opportunities, enriching the aviation talent pool with well-rounded, industry-ready professionals.

Financial Stability and Industry Recognition

As of June 30, 2024, Vietjet’s total assets stood at over VND91.755 trillion (approximately USD 3.65 billion), maintaining a stable debt-to-equity ratio of around 2, well below the global average of 5. The airline’s liquidity is robust, with cash and cash equivalents reported at VND4.1 trillion (approximately USD 163.18 million).

Saigon Ratings recognized Vietjet’s financial prudence and operational excellence. It assigned the airline a long-term credit rating of vnBBB with a “Stable” outlook. This rating reflects the airline’s remarkable recovery trajectory and strategic preparedness for future growth.

Furthermore, Vietjet has been lauded by leading financial and industry publications. International Finance named it “Best Low-cost Airline in Southeast Asia” and “Best Finance-Management-Aviation-Vietnam.” AirlineRatings recognized Vietjet as the “Best Ultra Low-cost Airline” and awarded it for “Best Low-cost Airline Onboard Hospitality.” Additionally, Vietjet was featured in Forbes’ top 50 best-listed companies in Vietnam in 2024.

Vietjet’s stellar performance in the first half of 2024 sets a new benchmark in the aviation industry. The airline’s significant revenue and profit growth, strategic international expansion, and sustainable fleet development highlight its resilience and visionary approach. As Vietjet continues to soar, it is well-positioned to meet growing domestic and international demand, paving the way for sustained future success.