Vietjet turns a profit in Q1/2021 thanks to new service development & financial investment

Thursday 06 May 2021 16:47
Vietjet Aviation Joint Stock Company (HoSE: VJC) has released its financial results for the first quarter of 2021 and audited annual financial statement for 2020 with positive indications of recovery.
Vietjet turns a profit in Q1/2021 thanks to new service development financial investment

Accordingly, the quarterly revenue and post-tax profit of Vietjet's parent company totaled VND2,845 billion (approx. US$123.3 million) and VND110 billion (US$4.77 million) respectively. Its consolidated revenue and consolidated post-tax profit for Q1/2021 were VND4,048 billion (US$175.7 million) and VND123 billion (US$5.3 million) respectively. Vietjet gained such profit from investments in finance and projects and develop new aviation services to offset the stagnant air transport business.

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

Over the first three months of the year, Vietjet has transported nearly 3.6 million of passengers on more than 21,000 flights. Its On-time Performance (OTP) rate has stayed at the global high of over 90%.

Apart from passenger transport, Vietjet has come up with different measures to increase the ancillary revenue which now accounts for nearly 50% of the airline's total revenue.

In order to meet the mounting cargo delivery demand, its cargo services and products have been diversified. In Q1/2021, Swift247 Joint Stock Company, with 67% of shares owned by Vietjet, has launched a new online air cargo services named SWIFT Mega to deliver heavy freight on Vietjet's extensive flight network. In total, Vietjet has transported 18,000 tons of freight in the first quarter of 2021.

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

In the coming months, Vietjet is focusing on digital transformation to maximize 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 like air cargo and extended aviation services. The airline plans to carry out financial investments and projects to ensure its business strategy is done in an effective and sustainable manner.

As Vietjet projects a recovery in international market in the fourth quarter of 2021, it is now ready for the resumption of regular international flights. Meanwhile, the Vietnamese Government is extending its tax and fee reliefs while considering possible financial assistance and loan interest deduction for the airlines. Vietjet hence strongly believes that the airline and the aviation industry will further develop and contribute to the economic recovery post-pandemic.

Recently, Vietjet has also reported positive audit result for 2020. The 2020 audit report showed the revenue of Vietjet's parent company at VND15,203 billion (approx. US$657.9 million). Its consolidated revenue and post-tax profit after audit were VND18,220 billion (approx. US$788.4 million) and VND69 billion (approx. US$2.99 million) respectively.

The carrier recorded a loss of VND 1,453 billion (approx. US$62.9 million) in air transport, remarkably lower by 31% than those previously reported in its own financial statements.

About Vietjet:
The new-age carrier Vietjet has not only revolutionized the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations and performance, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers' demands.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam's largest private carrier, the airline was awarded the highest ranking for safety with 7 stars in 2018, 2019, and 2020 by the world's only safety and product rating website and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018 and 2019. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others.

Thai Vietjet is cooperating with Vietjet to extend its flight network and provide more opportunities for travellers in the world to discover Thailand and many other countries. Currently the airline operates 14 domestic routes from Bangkok to Chiang Mai, Chiang Rai, Phuket, Krabi, Hat Yai, Khon-kaen, Nakhon Si Thammarat, Ubon Ratchathani, Surat Thani, Udon Thani plus the direct flight from Chiang Rai to Phuket, Hat Yai, and Udon Thani, direct flight from Chiang Mai to Nakhon Si Thammarat, 8 routes connecting Thailand and Vietnam such as Bangkok to Da Lat/ Da Nang, and more international routes from Thailand to mainland China.

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Source: Vivaldi Integrated Public Relations