Vietjet soars with int’l service expansion

A fast-growing international network has become the highlight of Vietjet as the multinational airline constantly reaches new global destinations. The expansion has fuelled a boom in trade, tourism and cultural exchange everywhere it flies to.
Vietjet soars with int’l service expansion, looking to be “air ambassador” connecting VN to world
An airplane of Vietjet (Source: Vietjet)

Vietjet's success in the international market has nailed the airline the reputation of an “air ambassador", always striving to lead and connect Vietnam and also Southeast Asian countries to nearly 100 destinations worldwide.

The air transport leader in international market

Vietjet has reported a remarkable increase of international passengers, at 3.5 million, in the first half of 2023, accounting for more than 50% of the total 6.9 million international passengers to and from Vietnam. It has become a bridge for global trade, investment, tourism, and cultural exchange.

In the second quarter of 2023, the airline opened 11 new international routes to Australia, Indonesia, and India, expanding its flight network to 120 routes (of which 75 international and 45 domestic). This has made air travel the most convenient, cost-effective means of transport for individuals and businesses between Vietnam and Southeast Asian region and major international markets such as Australia, India, Kazakhstan, Northeast Asia, and beyond.

Particularly, Vietjet has aggressively expanded its network to India which is home to over 1.4 billion people, operating seven routes connecting Hanoi and Ho Chi Minh City with the four major Indian cities: Mumbai, New Delhi, Ahmedabad, and Kochi. Vietjet's entry into the market has increased the total number of passengers traveling between Vietnam and India in the first six months of 2023 to over 300,000, nearly five times higher than 70,000 passengers recorded in the same period last year.

Vietjet since mid-April has also opened three direct routes in a row from Ho Chi Minh City - Vietnam’s economic, cultural, and tourism metropolis - to the three largest cities in Australia: Sydney, Melbourne, and Brisbane.

According to the airline’s data, the number of international passengers on the Vietnam-Australia route averaged merely 500,000 a year prior to 2023. Since Vietjet launched its flights in April, however, the number of weekly passengers has doubled, giving way to the projection of over one million passengers by the end of the year. Meanwhile, the fourth route to Australia, connecting Ho Chi Minh City with Perth, is set ready to launch this November.

In the Northeast Asian market, Vietjet has been for years operating the largest network between Vietnam/Southeast Asia and the Republic of Korea with 14 routes, Taiwan (China) with eight routes, Japan with seven routes), and kept expanding to over 50 destinations in mainland China. This further solidifies Vietjet's position as a multinational airline and an air ambassador in the global aviation industry.

Vietjet's international routes, with reasonable fares and high-quality services, have contributed to connecting cultures, bridging the geographical distance between Vietnam and Asian-Pacific countries and bringing people in the region closer. They have also promoted tourism and strengthened bilateral investment and trade, further facilitating the economic recovery and development of the countries.

Embracing the strategy of back-to-back innovation and constantly introducing premium products and services, Vietjet in the first half of 2023 has launched its Business class with countless privileges for passengers, and the SkyJoy loyalty program which has attracted over 8 million members. The airline has also put into operation the modern and environmental-friendly A330 aircraft fleet for flights to Australia, India, Kazakhstan, Japan, and the RoK.

Vietjet has actively contributed to the community by providing free flights and maintaining cheap tickets for the people and tourists in the region, living up to the airline’s philosophy that everyone can fly in a world where economies and cultures are brought closer than ever.

Revenue increases by 87%, representing 120% of H1 target

In the first six months of 2023, Vietjet's consolidated revenue was 29,770 billion VND (approx. 1.25 billion USD), soaring by 87% YoY and scoring 120% of the H1 target. Ancillary revenue maintained a high growth rate, reaching 9,000 billion VND (approx. 378.68 million USD) – a two-fold increase YoY and accounting for 40% of the total revenue. Consolidated after-tax profit was recorded at 387 billion VND (approx. 16.3 million USD).

Vietjet has safely operated 65,900 flights, transporting over 12.1 million passengers - a YoY increase of 30%. The airline has been the market leader in terms of passenger numbers, both on domestic and international routes.

The average seat utilization rate was over 85% while the technical reliability rate stood at 99.63%. Vietjet's fleet consists of 103 aircraft, including seven wide-body. Vietjet also operates a new fleet of aircraft and had large orders with Airbus and Boeing, gaining advantages in operational efficiency and financial performance.

Vietjet has been focusing on sustainable aviation development to fly passengers on green flights that are fuel-efficient while reducing CO2 emissions. Such is hoped to inspire more actions towards a green future, mitigating the impact of natural disasters and pandemics while bringing better values to the world.

The airline has used eco-friendly materials such as meal trays made from local bamboo and areca palm leaves. Vietjet has also accelerated the application of technology and digital transformation, moving towards paperless operations and streamlining processes to improve efficiency and minimize unintended environmental impacts.

As of June 30, 2023, Vietjet's total assets reached over 71,500 billion VND (approx. 3.01 billion USD) while the debt/equity ratio and the liquidity ratio was 1.2 and 1.5 respectively, which were all within good range of the aviation industry.

Vietjet has received a BB+ credit rating with a Stable outlook (VnBB+) from Saigon Ratings. It highly regarded Vietjet’s financial capabilities with solid capital structure, low debt ratio, and resourceful liquidity. Additionally, commercial advantage and diversified business platform helped Vietjet maintain its shareholder capital after the Covid-19 pandemic.

Being the largest passenger transporter of all airlines in Vietnam, particularly on international routes, Vietjet, based on its positive business performance in the first half of the year, is expected to achieve and even exceed its 2023 plan, continuing to contribute to the recovery and growth of tourism, investment, and the economy in general.

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(Source: VNA)