Vietjet (VJC) increases revenue and pre-tax profit by 17 per cent
Vietjet (VJC) increases revenue and pre-tax profit by 17 per cent
Vietjet Aviation JSC (HSX: VJC) has announced its financial statement for 2019's third quarter. Accordingly, its air transport revenue kept growing highly with an increase of 17 per cent on-year to VND10.415 trillion ($452.83 million), and the consolidated revenue reached VND13.577 trillion ($590.3 million).
Vietjet maintained high growth in market expansion, especially in international routes
With top-of-the-line cost management capabilities and a constant 88 per cent load factor, pre-tax profit from air transport increased by 17 per cent to VND1.310 trillion ($56.96 million), consolidated profit reached VND1.912 trillion ($83.13 million).
Looking at the accumulated results till the end of September 2019, the consolidated revenue was VND38.134 trillion ($1.66 billion) and pre-tax tax was VND4.206 trillion ($182.87 million), including VND30.597 trillion ($1.33 billion) of air transport revenue and VND2.864 trillion ($124.52 million) pre-tax profit.
In air transport business, passenger transport revenue was VND9.992 trillion ($434.43 million), of which the ancillary revenue contributed an important part in growth by reaching VND2.835 trillion ($123.26 million), equivalent to 28.3 per cent of the total passenger transport revenue. In the sustainable development model of low-cost carriers (LCC), ancillary revenue is an important factor determining the success of an airline as it makes up more than 90 per cent of the profit margin.
According to CarTrawler Ancillary YearBook 2019report, Vietjet was the 12th in terms of the ancillary revenue to total air transport revenue ratio.
Compared to the same period last year, Vietjet maintained high growth in market expansion, especially in international routes. By the end of the third quarter, the total number of routes was 127, 24 more than last year, with most being international ones. The airline has operated 34,000 safe flights and transported more than six million passengers to domestic and Asia-Pacific destinations.
Regarding business results, the current liquidity ratio was 1.3. Debt-to-equity ratio was 0.6, with equity of VND14.847 trillion ($645.52 million).
At the end of the quarter, Vietjet officially added to its young, modern fleet a new Airbus A321neo ACF (Airbus Cabin Flex), the first 240 seaters in the world. A321neo ACF aircraft help reduce fuel consumption by a minimum of 16 per cent, reduce noise by up to 75 per cent, and emissions by 50 per cent. With a wide network of domestic and regional flights, Vietjet now operates a fleet with technical reliability of 99.64 per cent, among the highest in the world.
AirFinance Journal has just announced its 2019 rankings, assigning Vietjet the BBB ranking, maintaining its status as one of the world's top 50 airlines. This is the second consecutive year Vietjet made it into the top 50, along with prestigious airlines like Ryanair, Spirit Airlines, Japan Airlines, Air Canada, British Airways, and Southwest Airlines.
According to the ranking, the EBITDAR margin of Vietjet was laudable, ranking 'A' in the top 3 in the world. Besides, the average age of the Vietjet fleet is 2.9 years, reaching AAA level according to AirFinance, leading the world airline rankings.
