Vietjet (VJC) posts 28 per cent jump in first-quarter air transport revenue
Vietjet (VJC) posts 28 per cent jump in first-quarter air transport revenue
Thanks to the continuous expansion of its international flight network in the first quarter, Vietjet’s air transport revenue grew by nearly 28 per cent on-year.
Vietjet’s pre-tax air transport profit reached VND923 billion ($40 million), up 25.3 per cent on-year, while consolidated pre-tax profit amounted to VND1.648 trillion (71.6 million), up 11.3 per cent compared to the same period of 2018.
The company did not have sale and leaseback transactions during the quarter, whereas it completed four such transactions during the same period last year.
Particularly, in the first quarter of 2019, Vietjet launched four international and two domestic routes, increasing the total number of its routes to 113.
International revenue surpassed domestic revenue and accounted for 55 per cent of total air transport revenue. With a large market development capacity and high profit margins, international route expansion helped the airline increase its foreign currency revenue from ticket sales and take advantage of lower fuel prices in international markets.
Vietjet completed 33,646 flights in the first quarter of 2019 on its flight network covering destinations in Vietnam and Japan, Hong Kong (China), Singapore, South Korea, Taiwan (China), Thailand, Myanmar, Malaysia, Cambodia, and China, among others.
Vietjet also flies to Dubai and Doha airports. Particularly, the company’s core revenue from air transport in this year’s first quarter came to VND10.071 trillion ($437.8 million), an increase of nearly 28 per cent, of which ancillary revenue reached VND2.647 trillion ($115 million), up 45.1 per cent on-year.
The proportion of ancillary revenue which reports high profit margins in air transport revenue continued to increase from 23.1 per cent in the first quarter last year to 25.4 per cent at the end of 2018 and to 26.3 per cent at the end of 2019’s first quarter.
Consequently, Vietjet’s business results during the period surpassed the projections, with consolidated revenue reaching VND13.636 trillion ($592.8 million) and consolidated after-tax profit hitting VND1.463 trillion ($63.6 million) – 9 and 7 per cent jumps on-year.
In the first quarter, Vietjet has completed 23.4 per cent of this year’s revenue target and 26.5 per cent of the profit plan. As of March 31, 2019, its equity surpassed VND15.507 trillion ($674.2 million), an increase of 34.6 per cent on-year and up 10.5 per cent compared to 2018.
Vietjet hosted its annual general shareholders’ meeting last month, where the initial targets set at its landmark initial public offering (IPO) were evaluated.
Accordingly, in early 2017, as one of the first companies choosing to apply international IPO standards (Reg S), Vietjet set plans to post more than VND90.785 trillion ($3.94 billion) in total revenue and VND7.801 trillion ($339 million) in after-tax profit during 2017-2018.
The results had exceeded its expectations as in 2017 and 2018 the carrier collected VND95.880 trillion ($4.16 billion) in total revenue and VND10.409 trillion ($452.5 million) in after-tax profit, equal to 105 and 133 per cent of the plan, respectively.
Vietjet has decided to pay 2018 dividend at the rate of 55 per cent, which was higher than the initially approved rate of 50 per cent at last year’s AGM.
By virtue of upbeat business results, constant regional and international flight network expansion plan as well as effective cost management and operation quality management, Vietjet expects to maintain positive performance in the next three years, well on track to reach or surpass the business targets that the company’s Board of Management reported at the recent AGM 2019.
Accordingly, the company sets to maintain its leading position in domestic passenger transportation, effectively expanding international routes, considering investment opportunities in infrastructure, terminals, ground and technical services, and training, from there making use of its advantages to bolster efficiency and diversify aviation services.
Vietjet is the first airline in Vietnam to operate as a new-age airline offering flexible, cost-saving fares and diversified services to meet customers’ demands.
The company was named Best Ultra Low-Cost Airline 2018-2019 and awarded the highest ranking for safety with seven stars in 2018 by the world’s only safety and product rating website AirlineRatings.com.
It has also been listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018.
