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Vietjet Achieves Largest Market Share In Vietnam Revenue For International Operation Increases By 51% Year-On-Year

September 9, 2019 Aviation No Comments Email Email

Vietjet Aviation Joint Stock Company (HOSE: VJC) has recorded VND20,181 billion in revenue and VND1,553 billion in pre-tax profit, up 22% and 15% respectively year-on-year, achieving the largest market share in Vietnam thanks largely to growth in its international business.

In its latest audited financial statements for the first six months of 2019, the parent company reported that revenue for passenger transport reached VND18,984 billion, an increase of 17% year-on-year. Of this, international revenue was VND6,865 billion, an increase of 51% and ancillary revenue was VND5,429 billion, up 43% year-on-year mainly thanks to the increase of transported passengers in international routes which accounted for 27% of total air transport revenue. Total international revenue (by country of destinations) was VND10,944 billion, equivalent to 54% of total air transport revenue.

According to Vietjet’s audited financial statement, passengers on international routes increased by 35%. In the first half, Vietjet opened nine international routes to Japan, Hong Kong, Indonesia, China and three domestic routes. There were 120 routes in Vietjet’s flight network covering destinations in Vietnam, Japan, Hong Kong (China), Singapore, South Korea, Taiwan, Thailand, Myanmar, Malaysia, Cambodia, Indonesia and China, etc. Vietjet aircraft have also operated in Dubai and Doha airports. International markets have had room to grow with good profit margin thanks to ancillary revenue growth as well as a low fuel cost advantage and an increase in foreign currency sources.

Vietjet operated 68,821 flights and transported 13.5 million passengers in all network during the first half of 2019. According to aviation statistics, Vietjet maintained its leading position in the domestic market with 44% market share, while Vietnam Airline had 35.9%, Jetstar Pacific had 13.9%, Bamboo Airways had 4.2% and 2% of VASCO (Source: CAAV).

In terms of the consolidated financial indicators, the airline’s total assets stood at VND43,005 billion, up 26% year-on-year. The current liquidity index was 1.41 while Debt/ Equity ratio was 0.51, compared to 0.64 for the same period last year, of which equity was VND15,529 billion, an increase of over 30% year-on-year. Available seat kilometers (ASK) was well maintained, CASK was 3.88 cents, CASK ex-fuel was 2.27 cents, mainly from reducing fuel costs (decreased by 4%) and cost savings in management, operation (reduced by 2%).

In the stock market, VJC stocks have just been listed in the Vietnam Sustainability Index VNSI by Ho Chi Minh Stock Exchange from 5 August 2019 to 31 July 2020; which included the top 20 stocks of HOSE listed companies with the best sustainable development scores. VNSI is one of the measures for the market and lists the best companies which help investors refer to the “green” of their portfolio. According to Airfinance Journal, Vietjet is the 22nd ranked company in the world’s 50 airlines having the best operating and financial indicators among 162 well-known airlines worldwide.

Aiming to become the “Consumer Airline”, Vietjet has cooperated with major partners to create a diverse ecosystem based on modern technology platforms, offering many attractive, high quality services and products to meet customers’ demands. In June 2019, Vietjet launched the new version of mobile app integrated Vietjet SkyClub membership program featuring many incentives, practical utilities and fast booking on mobile phones. Along with cooperation program with Google Flights, Vietjet has promoted images of Vietnamese people, tourism and the country to the world, as well as offered convenient travel opportunities for Vietnamese and international tourists. In August, Vietjet announced a partnership with Swift247 and Grab to provide super-express delivery, through GrabExpress’s freight forwarding service platform and Vietjet aircraft.

The aviation industry in Vietnam has been developing and is expected to keep growing strongly in the future. Airports Corporation of Vietnam (ACV) forecasted that in 2019 the number of passengers transported by airlines will be 112 million, an increase of more than 8 million passengers. Being the leading airline in the domestic market and strongly developing its international flight network, Vietjet has great advantages in its expanding flight network, modern and fuel efficiency fleet with the world’s lowest average age of 2.82 years, reasonable ticket prices that benefit the majority of people and international visitors for visiting relatives, traveling, studying abroad and trading purposes.

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