Vietjet posts positive business result in Q1

May 04, 2021 - 18:46
Vietjet's consolidated revenue and consolidated post-tax profit for the first quarter reached over VNĐ4 trillion ($175.7 million) and VNĐ123 billion ($5.3 million), respectively.


A Vietjet plane lands at the Tân Sơn Nhất International Airport in HCM City. — Photo courtesy of Vietjet

HCM CITY - Vietjet Aviation Joint Stock Company has released its financial results for the first quarter of 2021 with positive indicators of recovery.

During the period, the quarterly revenue and pre-tax profit of Vietjet’s parent company totalled over VNĐ2.84 trillion (US$123.3 million) and VNĐ110 billion ($4.77 million), respectively.

Its consolidated revenue and consolidated post-tax profit in the first quarter reached over VNĐ4 trillion ($175.7 million) and VNĐ123 billion ($5.3 million), respectively.

Vietjet gained such profit from investments in finance and projects and new aviation services developed to offset the stagnant air transport business, the enterprise said in a statement. 

It also transferred all of the treasury shares it owned in the first quarter to strengthen its balance sheet and cash flow in support of the air transport sector.

From January to March, Vietjet still maintained its efficient cost control through innovative and creative programmes and measures to cut back on expenditures while optimising fleet operations with a 52 per cent cost reduction and a year-on-year decrease of 39 per cent in costs for ancillary sale and administration.

Vietjet transported nearly 3.6 million passengers on more than 21,000 flights over the first three months with its On-time Performance (OTP) rate staying at the global high of over 90 per cent.

Vietjet was one of the first airlines to have fully resumed its domestic flight network and even opened more new routes to meet the increasing travelling demand post-Tết holiday and in the summer. Such routes had helped localities to kick-start their economic recovery.

Apart from passenger transport, Vietjet also came up with different measures to increase the ancillary revenue which now accounts for nearly 50 per cent of the airline’s total revenue.

Its cargo services had also become more diverse in terms of product range which was developed based on the movement of the logistics market in order to meet the increasing cargo delivery demand.

Swift247 Joint Stock Company, which has 67 per cent of shares owned by Vietjet, launched a new online air cargo services named SWIFT Mega to deliver heavy freight on Vietjet’s extensive flight network. In total, Vietjet had transported 18,000 tonnes of freight in the first quarter of 2021.

The airline won the “Belly carrier of the year” and the “Low-cost carrier of the year” awards by cargo magazine Payload Asia in late January this year.

Paying extra attention to the safety and health of the passengers and the flight crew, Vietjet has been strictly following the COVID-19 prevention measures of the World Health Organisation (WHO), the International Air Transport Association (IATA), aviation authorities and health agencies to help passengers and flight crew stay safe.

Vietjet was hailed as one of the top 10 safest and best low-cost airlines in the world in 2020 by AirlineRatings. It also received the highest safety ranking of 7 stars regarding COVID-19 prevention measures implemented by airlines.

In the coming months, Vietjet is focusing on digital transformation to maximise its capabilities and operating effectiveness. It is also pushing ahead negotiations with services suppliers for appropriate discounts while proactively looking for alternative sources of revenue including air cargo and extended aviation services.

The airline also plans to carry out financial investments and projects to ensure its business strategy is done in an effective and sustainable manner.

Vietjet is expected to kick off a series of technical and physical infrastructure projects plus an investment into a technology park. The airline is stepping up preparations to welcome top aviation experts and activities, aiming to make Vietjet one of the top airlines in the world. — VNS