Vietjet: Reports profit and expands international flight network in Q3/2023

Steering towards green and sustainable development with an extensive global network, Vietjet Aviation Joint Stock Company (HoSE: VJC) has reported impressive performance over the first nine months of 2023.
Vietjet: Reports profit and expands international flight network in Q3/2023
Passengers are excited about Vietjet’s flights filled with joy and smiles.

In Q3/2023, Vietjet safely operated 36,000 flights and transported 6.8 million passengers, including 2.3 million international travellers - an increase of 10% over the third quarter of the pre-pandemic 2019 and up to 127% YoY.

During the first nine months of 2023, Viet Nam welcomed 23.7 million international passengers through its airports, skyrocketing by 267% YoY. In particular, Vietnamese airlines carried 11.5 million travellers, of which 51% or 5.9 million flew with Vietjet, greatly supporting inbound tourism and international investment.

Vietjet’s fleet consists of 103 aircraft, including 18 operated by Thai Vietjet and two new aircraft being delivered. The airline has reported a relatively high average seat utilisation rate of over 85% and a technical reliability rate of 99.72%.

The total transported cargo volume reached 20,300 tonnes, growing by 76% YoY. Vietjet accounted for 23% of the cargo market share among Vietnamese airlines.

While meeting the demand for travel to popular destinations abroad, Vietjet’s international routes have contributed to the bilateral development of tourism, trade and investment, supporting economic recovery. In Q3/2023, the airline opened seven new international routes, bringing the total number of routes to 125 (45 domestic and 80 international routes). It is the first airline to have flights connecting Viet Nam with the five largest cities in Australia, including Perth, Adelaide, Brisbane, Melbourne, and Sydney.

Vietjet’s cabin crews welcome passengers on board.
Vietjet’s cabin crews welcome passengers on board.

Vietjet’s separate and consolidated revenues were reported at 13,548 billion VND (approx. 551.38 million USD) and 14,235 billion VND (approx. 579.34 million USD), respectively, in Q3/2023, increasing by 32% and 23% YoY. Separate and consolidated after-tax profits reached 579 billion VND (approx. 23.58 million USD) and 55 billion VND (approx. 2.23 million USD), up by 175% and 30% YoY.

Vietjet’s international passenger transport witnessed rapid growth, increasing by 201% YoY. It accounted for more than 57% of the total passenger revenue and 35% of the total flights and passengers.

Vietjet also focused on ancillary and cargo revenue, which had relatively high-profit margins. Their revenue, which reached 5,029 billion VND (approx. 204.87 million USD), accounted for 40% of the airline’s total air transport-related revenue and grew by 26% YoY and 77% over Q3/2019.

As of September 30, 2023, Vietjet’s total assets reached over 76,500 billion VND (approx. 3.11 billion USD). The debt-to-equity ratio stood at 1.5 times while the liquidity ratio was 1.4 times, resting within safe levels of the aviation industry.

Vietjet continues to lead in driving the economy, commerce, and tourism. It is a reliable strategic partner for reputable organisations worldwide.

As of September 30, 2023, its cash and cash equivalents balance was recorded at 2,077 billion VND (approx. 84.36 million USD). Such plus the working capital guarantees the company’s immediate solvency.

Vietjet, in the first nine months of 2023, has paid nearly 3,750 billion VND (approx. 152.6 million USD) of direct and indirect taxes and fees.

During the official visit of the US President to Viet Nam, Vietjet signed an agreement with Boeing on the delivery of 200 737 MAX aircraft worth 25 billion USD in the next five years. It also agreed with Carlyle Aviation for aircraft financing worth 550 million USD.

With a sustainable business development strategy and remarkable growth post-pandemic, Vietjet has attracted the attention of many local and foreign investors. In Q3/2023, Vietjet reached preliminary agreements with three Viet Nam-based institutional investors, committing to invest 100 million USD. They will enhance the airline’s financial capacity from equity capital to meet the needs of growth, investment, network expansion, and fleet expansion. The investment transactions are expected to be completed in the fourth quarter of 2023.

With stable operations and development, the airline has been upgraded to VnBBB- credit rating from VnBB+ with a stable outlook by Saigon Ratings, Viet Nam’s first independent credit rating agency.

With a strategy to build the aviation human resources of international standards, Vietjet has also invested in infrastructure upgrades and developing a pool of trainers at the Vietjet Aviation Academy (VJAA). In September 2023, VJAA officially signed a cooperation agreement and became the International Air Transport Association (IATA) training partner.

The airline has also received numerous international and domestic awards, including “Asia’s Leading Airline for Customer Experience” by the World Travel Awards, “Top 100 Most Valuable Brands in Viet Nam,” and “Top 10 Strong Brands for Sustainable Development 2023.” Meanwhile, Vietjet SkyJoy was the “New Innovative Product” at the Better Choice Awards.

Utilising advanced digital technology and a comprehensive aviation service ecosystem, Vietjet has constantly introduced new and innovative products, including the Sky Care travel insurance program, Deluxe class with superior amenities, and the “Fly now, Pay later” financial solution that supports flexible airfare payment.

The SkyJoy program, dedicated to Vietjet’s loyal customers, allows them to redeem rewards with over 250 brands, exchange tickets, and enjoy attractive airfares. The program has had ten million members in the third quarter of 2023.

While still committing to its mission of realising the “flying dream” for millions of Vietnamese and international travellers, Vietjet has been all in for environmental and community responsibilities in each locality. In October 2023, Vietjet launched the Fly Green fundraising program with the meaningful message of “Every red ticket for one green planet”. Accordingly, the airline contributes VND5,000 (approx. US 20 cents) from each ticket sold to the fund to sponsor environmental protection programs.

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