Vietjet, Vietnam’s first new-age airline, is pleased to announce that it is currently ranked 12th in terms of ancillary revenue to total air transport revenue ratio in the world. This is according to The 2019 CarTrawler Ancillary Revenue YearBook (*) which comprises statistics of more than 100 airlines’ audited financial statements.
Vietjet’s audited business results of H1 2019 showed the revenue of passenger transport stood at VND18,984 billion, an increase of 17 per cent year-on-year for the airline. Correspondingly, ancillary revenue of passenger transport reached VND5,429 billion, an increase of 43 per cent year-on-year mainly thanks to the growth of international passenger transportation. The proportion of ancillary revenue in total air transport revenue was 27 per cent.
Ancillary revenue is a decisive factor in the success of a carrier when its profit margin reaches over 90 per cent according to the sustainable development model of low-cost carriers (LCCs). Vietjet’s international markets have had room to grow with good profit margin thanks to ancillary revenue growth.
Aiming to expand its service ecosystem and continue on a path of sustainable development, Vietjet has planned to provide ground services at Noi Bai International Airport in Hanoi starting from 2020. This will bring benefits to both customers and the airline, including improvement of service quality and ancillary revenue.
Promisingly, Vietjet will maintain positive growth in passenger transport, aiming to reach Top 5 airlines in the world for ancillary revenue moving forward.
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