*The airline to further expand flight network to India, which sees the population of more than 1.2 billion people*
Vietjet continues to see positive growth in its core business of air transportation in 2019- maintaining the lead in Vietnam’s domestic market coupled with fast growth in international flight network. In 2019, the airline’s flight network increased by 24% with 22 international routes connecting Vietnam with Japan, Hong Kong SAR, Indonesia and especially India with its population reaching more than 1.2 billion people. Vietjet also transported nearly 25 million passengers in 2019, resulting in an increase of 28% passenger traffic compared to 2018.
(New Delhi, February 3, 2020) – Vietjet Aviation Joint Stock Company (HOSE code: VJC) has announced its business result for 2019’s 4th quarter. The airline’s revenue for air transportation in the 4th quarter stood at VND 10,500 Billion, with an increase of 25%. This results in its 2019’s revenue and profit from air transportation standing at VND 41,097 billion and VND3,936 billion, increasing by 21.4% and 29.3% respectively compared to 2018. Vietjet’s revenue from sales and leaseback activity has been adjusted due to the airline revising its aircraft delivery from Airbus in 2019. The airline received 16 aircraft in 2018 while the number for 2019 was seven aircraft, which resulted into a slight decrease in the accumulated revenue and profit in 2019 as compared to 2018 which stood at VND 52,095 billion and VND 5,010 billion respectively.
To compensate for the delay in new aircraft’s delivery from Airbus, Vietjet carried out a lease of nine aircraft, totaling its operating fleet to 78 aircrafts with 321,000 aircraft operation hours and 139,000 flights. Its load factor stays at 87% with technical reliability rate being at 99.64%, which are among the top airlines in the Asia Pacific region. Vietjet has also been awarded the highest ranking for safety with 7-stars from AirlineRatings.com.
Vietjet’s advanced technology in its operations has been one of the key factors for the airline to accelerate its process of improvement and sustainable development. The airline has completed transferring 80% of its data system to the Amazon Cloud, using Flight Data Monitoring (FDM) program to effectively manage flight crew’s operation and support SFCO2 fuel control program. Thanks to the SFCO2 program, Vietjet has saved more than 4.8 million kg of fuel and reduced 15.3 million kg of CO2 emissions in 2019.
The carrier’s growing business is also attributed to its effective strategies on ancillary revenue management, including extra service fees, cargo transportation, inflight services (food, beverages & duty-free products) and advertisements. In 2019, Vietjet’s ancillary revenue was VND 11,356 Billion, up by 35.2% compared to 2018. The contribution of ancillary revenue in the airline’s total air transportation revenue has increased from 25.4% in 2018 to 30% in 2019. Following the sustainability-focused model of low-cost carrier (LCC), ancillary revenue has become an important factor determining the success of Vietjet with a profit margin of over 90%. According to the CarTrawler YearBook 2019 report, Vietjet was ranked 12th worldwide in terms of its ratio for ancillary revenue in addition to its total air transport revenue.
According to Vietjet’s consolidated financial report, the airline’s total asset in 2019 was VND 47.608 billion with the owner’s equity being at VND 17,661 billion including VND 2,347 billion of treasury shares, resulting in an increase of 22% and 25.8% respectively against those in 2018. Its current liquidity was 1.4 while debt to equity ratio was 0.77, the lowest rate in Vietnam’s aviation industry. Vietjet’s EBITDAR margin was 31%, resulting in it being ranked one of the top airlines in the world.
Vietjet’s new and modern fleet also become younger with the average age of 2.75 years and fuel-efficiency. Especially, in September 2019, the airline received a A321neo ACF (Airbus Cabin Flex) aircraft with 240 seats, the first of its kind in the world. The new aircraft features fuel consumption savings by a minimum of 16%; noise reduction up to 75%; and emission reduction up to 50%. In 2020, the airline plans to take delivery of nine more newer A321neo aircraft and 20 more every year from 2021, which is expected to reduce fleet operation cost and increase the profit from air transportation and aircraft financing activities. Additionally, Vietjet continues to optimize its operation and management cost in order to enhance its air transportation business performance.
With modern fleet and expanding flight network all over Asia Pacific region, Vietjet’s growth potential is high considering the fact that Vietnam is geographically located within the radius covering nearly half of the world’s population. This market segment is expected to create high currency income and good profit margin to the airline thanks to its growth in ancillary revenue and low fuel price.
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 and 2019 by the world’s only safety and product rating website AirlineRatings.com 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.
With a young, modern fleet with an average age of only 2.7 years, and as one of the leading airlines in the world in terms of safety, quality and technical reliability, Vietjet operates around over 400 flights daily and has carried nearly 100 million passengers to date across an expansive network that includes destinations throughout Vietnam and international destinations in India, Japan, South Korea, Taiwan, Singapore, Hong Kong, Indonesia, Thailand, Malaysia, Myanmar, Cambodia and China.
Further information at www.vietjetair.com
No comments:
Post a Comment