Vietjet receives the 101st aircraft to expand its international flight network. — Photo courtesy of Vietjet

HCM CITY — Steering towards green and sustainable development with an extensive international network,Vietjet Aviation Joint Stock Company (HoSE: VJC) has reported positive performance over the first nine months of 2023.

In the third quarter, Vietjet’s separate and consolidated revenues were reported at over VNĐ13.54 trillion (US$551.38 million) and VNĐ14.23 trillion ($579.34 million), respectively, up 32 per cent and 23 per cent year-on-year, the airline announced on Tuesday. 

Separate and consolidated after-tax profits reached VNĐ579 billion and VNĐ55 billion, respectively in Q3, surging 175 per cent and 30 per cent year-on-year. 

Vietjet said it had also focused on ancillary and cargo revenue, which had relatively high profit margins. Their revenue, which surpassed VNĐ5 trillion in total, accounted for 40 per cent of the airline’s total air transport-related revenue and grew 26 per cent year-on-year and 77 per cent over Q3/2019.

Its cash and cash equivalents balance as of September 30, 2023, was recorded at over VNĐ2.07 trillion, the airline said, adding that it has paid nearly VNĐ3.75 trillion of direct and indirect taxes and fees in the first nine months of 2023. 

As of September 30, 2023, Vietjet's total assets hit VNĐ76.5 trillion. The debt-to-equity ratio stood at 1.5 times while the liquidity ratio was 1.4 times, resting within safe levels of the aviation industry.

According to Vietjet, it safely operated 36,000 flights and transported 6.8 million passengers in Q3, including 2.3 million international travelers, an increase by 10 per cent over the third quarter of the pre-pandemic 2019 and up to 127 per cent year-on-year.

Vietjet's fleet consists of 103 aircraft, including 18 operated by Thai Vietjet and two brand new aircraft on delivery. The airline has reported a relatively high average seat utilisation rate of over 85 per cent and a technical reliability rate of 99.72 per cent.

The total transported cargo volume reached 20,300 tonnes, growing 76 per cent year-on-year. Vietjet accounted for 23 per cent of the cargo market share among Vietnamese airlines.

While meeting the demand for travel to popular destinations abroad, Vietjet's international routes have contributed to the bilateral development of tourism, trade and investment, offering support to the economic recovery.

The airline opened seven new international routes in Q3, bringing the total number of routes to 125, including 45 domestic and 80 international ones. It is the first airline to have flights connecting Việt Nam with the five largest cities in Australia, including Perth, Adelaide, Brisbane, Melbourne, and Sydney.

Vietjet and Carlyle Aviation Partners sign a MoU for aircraft funding worth $550 million during the official visit of the US President Joe Biden to Việt Nam. — Photo courtesy of Vietjet

During the official visit of the US President to Vietnam, Vietjet signed an agreement with Boeing on the delivery of 200 737 MAX aircraft worth $25 billion over the next five years. It also reached an agreement with Carlyle Aviation for aircraft financing worth $550 million.

With a sustainable business development strategy and remarkable growth post-pandemic, Vietjet has attracted the attention of many local and foreign investors. In Q3, Vietjet reached preliminary agreements with three Việt Nam-based institutional investors committing to invest $100 million.

Under the agreements, these investors will enhance the airline's financial capacity from equity capital to meet the needs of growth, investment, network expansion, and fleet expansion. The investment transactions are expected to be completed in the fourth quarter of 2023.

The airline, with stable operations and development, has been upgraded to VnBBB- credit rating from VnBB+ with a stable outlook by Saigon Ratings, Việt Nam’s first independent credit rating agency.

Meanwhile, Vietjet has also invested in infrastructure upgrade and developing a pool of trainers at the Vietjet Aviation Academy (VJAA) following its strategy to build the aviation human resources of international standards. In September 2023, VJAA officially signed a cooperation agreement and became a training partner of the International Air Transport Association (IATA).