Vietjet's (VJC) air transport revenue down 54% in Q2
Vietjet Aviation Joint Stock Company (HOSE: VJC) has experienced a 54 per cent year-on-year loss in revenue.
Profits dropped to VND1.97 trillion (about US$84.5 million) in the second quarter of 2020, according its business result released on Sunday.
During the period when the country was hit hardest by COVID-19, the carrier operated a flight network of 52 domestic routes with 14,000 flights, transporting more than two million passengers.
In the first half of this year, the airline’s loss stood at VND2.11 trillion ($90.5 million), which was considered a modest number compared to the total loss of more than $84 billion for the global aviation industry, according to the report.
In order to support its cash flow, Vietjet has looked for partners and implemented many financial solutions such as asset transfer and financial investment, which resulted in a revenue surpassing VND1.17 trillion ($50.4 million) with a post-tax consolidated profit of VND1 trillion ($45.6 million) in second quarter.
As per the data, Vietjet's consolidated profit topped VND73 billion ($3.2 million) in six month period, increasing financial resource for the airline’s air transport business.
The airline’s total asset exceeded VND48.39 trillion ($2 trillion) with the owner’s equity being at nearly VND7.34 trillion ($745 million) including treasury shares. Its current liquidity was kept at a good rate at 1.4 while debt to equity ratio was 0.57, which were among the lowest rates in the global aviation industry.
This allowed Vietjet to proceed with its long-term financing plan in order to enhance its internal resources for fighting the current pandemic.
Once Viet Nam opened its skies for domestic operation in June, Vietjet resumed its entire domestic flight network with 300 daily flights, a triple to five times growth compared to those at the country’s COVID-19 pandemic peak.
The airline also launched eight new routes to meet rising domestic travel demand, increasing its total domestic flight network to 52 routes with overall flights reaching 14,000 flights. Its total passenger carriage reached 1.2 million passengers, marking a positive recovery for the domestic market in June.
Meanwhile, Vietjet has also implemented many solutions since early 2020 to weather the pandemic, including expanding the cargo transportation business, developing SkyBoss product and ancillary services and offering “Power Pass” - the unlimited flight pass.
In addition, the airline has boosted cargo transport service since April, being the first airline in Viet Nam to gain the Government’s approval to deploy cargo operations in the passenger cabin (CIPC).
It has also increased charter services, expanding its self-serve ground service at Noi Bai International Airport to optimise operating costs.