Vietjet Aviation Joint Stock Company (HOSE code: VJC) has announced that its air transport revenue increased by 17% Q3, 2019 to hit VND10,415 billion, against the corresponding period last year. The consolidated revenue reached to VND13,577 billion.
In filing their Q3 results, the company attributed the dramatic growth to the increase in Vietjet’s routes – mostly international ones. By the end of the third quarter, the total number of routes operated by Vietjet was 127, an increase of 24 routes year-on-year. To date, the airline has operated 34,000 safe flights, transported more than 6 million passengers to all domestic and Asia-Pacific destinations.
With solid cost management ability and a high load factor of 88%, air transport profit before tax increased by 17% to VND1,310 billion with consolidated profit reached to VND1,912 billion. Regarding the accumulated business results for the first nine months of 2019, Vietjet’s consolidated revenue stood at VND38,134 billion and profit before tax was VND4,206 billion, of which the air transport revenue reached to VND30,597 billion with profit before tax stood at VND2,864 billion.
As for the overall air transport business, passenger transport revenue was VND9,992 billion, of which the ancillary revenue contributing an important part in growth reached to VND2,835 billion, equivalent to 28.3% of the total passenger transport revenue.
In the sustainability-focused model of low-cost carrier (LCC), ancillary revenue is an important factor determining the success of Vietjet because of its over 90% profit margin. According to the CarTrawler YearBook 2019 report, Vietjet was ranked 12th in terms of ancillary revenue to total air transport revenue ratio in the world.
As business results, the current liquidity was 1.3 while debt to equity ratio was 0.6, of which equity was VND14,847 billion.
At the end of Q3, Vietjet officially added to its young, modern fleet a new Airbus A321neo ACF (Airbus Cabin Flex), the world’s first 240-seat aircraft. A321neo ACF aircraft offers a reduction in fuel consumption by a minimum of 16%, and a reduction in noise and emissions by up to 75% and 50% respectively. With a wide network of domestic and regional flights, Vietjet operates a fleet with a technical reliability of 99.64%, among the highest in the world.
According to AirFinance Journal’s 2019 ranking, Vietjet was ranked at BBB level, continuing to be in the world’s top 50 airlines. This is the second consecutive year Vietjet has been honored in the top 50 airlines, along with prestigious airlines such as Ryanair, Spirit Airlines, Japan Airlines, Air Canada, British Airways, Southwest Airlines, and many more.
According to the ranking report, Vietjet’s EBITDAR margin has been assessed at A ranking, placing it in the top three airlines around the world. Besides, the average age of Vietjet fleet is 2.9 years, reaching AAA level and leading in the world airline rankings, according to AirFinance.
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