The start of 2019 has proven to be a year of highs for new-age airline, Vietjet, with the airline recording a growth of approximately 28% year-on-year in air transport revenue for the first quarter of 2019 (Q1/2019).
Accordingly, Vietjet’s core revenue from air transport in Q1/2019 reached VND10,071 billion, of which ancillary revenue reached VND2,647 billion, up 45.1% year on year. The proportion of ancillary revenue (having high profit margin) in air transport revenue also continued to increase steadily from 23.1% in QI/2018 to 25.4% at the end of 2018, and now hitting 26.3% as of end QI/2019.
Air transport profit before tax reached VND923 billion, up 25.3% year-on-year, while consolidated profit before tax reached VND1,648 billion, an increase of 11.3% compared to the same period in 2018. In Q1/2019, the company did not perform any sale and leaseback transactions; while in the same period last year, the airline had performed four sale and leaseback transactions.
The airline’s continual expansion of its international flight network in Q1 has propelled the proportion of international revenue to surpass domestic revenue, with international revenue accounting for 55% of total air transport revenue.
In the first quarter of 2019, Vietjet launched a total of four international routes and two domestic routes, increasing its total number of routes offered to 111. The airline operated a total of 33,646 flights across its flight network, covering destinations within Vietnam as well as international destinations such as Malaysia, Japan, Hong Kong (China), Singapore, South Korea, Taiwan (China), Thailand, Myanmar, Cambodia, and China. The airline’s fleet also operates at Dubai and Doha airport.
International routes have a large market development capacity and high profit margins. It also helps airlines increase its foreign currency revenue from ticket sales as well as take advantage of lower fuel prices in international markets.
Consequently, Vietjet’s business results in QI/2019 has continued a steady growth trajectory, exceeding the airline’s plans with consolidated revenue reaching VND13,636 billion and consolidated profit after tax reaching VND1,463 billion, equivalent to an increment of 9% and 7% year-on-year respectively.
Moreover for the first quarter of 2019, Vietjet has completed 23.4% of this year’s revenue plan and 26.5% of the airline’s profit plan. As of 31 March 2019, equity was over VND15,507 billion, an increase of 34.6% year-on -year and up 10.5% compared to 2018.
Taking into account Vietjet’s positive business results, efficient cost management and quality operation management abilities, as well as its regional and international flight network expansion plans, Vietjet expects to maintain positive growth according to its three year target as reported by the Board of Management in the Annual General Shareholders’ Meeting.
The airline will also set out to maintain its leading position for air transportation in the domestic market, effectively expand international routes, consider investment opportunities for infrastructure, terminals, technical services, and ground service, as well as provide adequate training to promote the airline’s advantages and efficiency when expanding to provide aviation services.
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