Vietjet Air reports robust growth in revenue
Vietjet Air announced its business results in the second quarter of 2018 with the robust growth in core business activities, including air transport and ancillary revenue.
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Food and drink served on Vietjet Air flight (Source: Vietjet Air)
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Accumulated air transport revenue in the first six months of 2018 reached VND16,478 billion (US$726 million), an increase of 52.6%. Air transport profit stood at VND1,686 billion (US$74.3 million), an increase of 53.4% over the same period of 2017, equivalent to 56.2% of the 2018 plan.
In the second quarter of 2018, Vietjet Air carried over 5.8 million passengers, an increase of 28%, of whom 4.2 million were domestic passengers, up 12.7%, and more than 1.6 million international passengers, up 96% over the same period of 2017.
Thanks to the strong growth of fleet, including the modern Airbus A321 Neo and expansion of longer routes to Northeast Asia, international flights promoted the sales of meals, souvenirs, baggage etc. in flights, the ancillary revenue in the first half of 2018 reached VND3,807 billion (US$167.7 million), a 50% increase over the first half of 2017.
In the first six months of 2018, Vietjet Air continued to lead the domestic passenger traffic and be the best operating flight growth airline with 59,944 flights, up nearly 22%. The on-time performance stood at 83%.
Total revenue of the first six months 2018 stood at VND21,197 billion (US$933.8 million), an 29% increase year on year. Profit before tax of Vietjet Air in the first half of this year reached VND2,378 billion (US$104.7 million), up 26%.
According to its plan, in 2018, Vietjet Air will receive 17 Airbus aircraft. In the first six months, Vietjet Air received 4 Airbus A321 aircraft. In the second half of the year, Vietjet Air will receive 13 aircraft. As a result, in the last six months of the year, Vietjet Air will record additional revenue from this aircraft delivery.
In the middle of July, Vietjet Air signed agreements to purchase 100 Boeing 737MAX aircraft worth US$12.7 billion and 50 Airbus A321 NEO worth US$7 billion, assuring that by 2025 the company’s new fleet will be synchronized, well-equipped and fuel efficient, serve for the plan to establish aviation alliance in the region and in the international market.
Started operating new modern aircraft which could save up to 15 percent of fuel costs, efficient management program as well as international flight network expansion, Vietjet Air continued to boost the foreign currency ticket sales, increase the proportion of ancillary revenue and decrease fuel cost because the fuel price in foreign countries is lower than in domestic market by around 30% due to taxes, fees.
In addition to manage flexibly the load factor of domestic routes in the low season, focus on the international routes and wet-leasing abroad, help increase efficiency, boost the foreign exchange earnings, stabilize the revenue.
Vietjet Air is the first airline in Vietnam that operates a low-cost, modernized carrier model to provide a wide range of services to its customers. Apart from air transportation, Vietjet Air also provides consumer goods and services to the customers through the application of advanced E-Commerce technology.
Vietjet Air is an official member of the International Air Transport Association (IATA) with IOSA Safety Certificate. In addition to the “Top 500 Leading Brands in Asia 2016” and “Best Recruiting Brand in Asia” for many consecutive years, Vietjet is also honoured to be the Best Asian Low Cost Carrier awarded by TTG Travel Award in 2015. Besides that, Vietjet Air is also honored as the Top 3 Fastest Growing Facebook Fanpage award by Socialbakers.
