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Vietjet Achieves Remarkable Milestones in 2023

In Business, Travel
February 05, 2024

MUMBAI:
Vietjet Aviation Joint Stock Company (HOSE: VJC) has announced impressive business performance for the year 2023, solidifying its position as one of the most resilient and rapidly growing airlines in the global aviation industry. The company has relentlessly expanded its international network, thereby accelerating the recovery and development of tourism, investment, and trade in the Asia-Pacific region. 

In 2023, Vietjet operated 133,000 flights with 25.3 million passengers onboard (excluding Vietjet Thailand) – a surge of 183% YoY, of whom more than 7.6 million were on international flights. In the last year, Vietjet continued to grow its flight network with 33 new international and domestic routes, bringing the total number of routes to 125, including 80 international and 45 domestic routes. Some notable routes are Ho Chi Minh City – Shanghai, Ho Chi Minh City – Vientiane, Hanoi – Siem Reap, Hanoi – Hong Kong, Phu Quoc – Taipei, and Phu Quoc – Busan, etc.
 
Vietjet is the largest operator between Vietnam and India, with routes connecting Vietnam to the cities of Delhi, Mumbai, Ahmedabad, Kochi, and Tiruchirappalli, currently operating 35 round-trip flights per week. The airline has also become the first airline to connect Vietnam with the five largest cities in Australia, including Sydney, Melbourne, Perth, Adelaide, and Brisbane.

Vietjet’s cargo volume totaled 81,500 tons, an increase of 73% YoY. Vietjet reported separate revenue of VND53.6 trillion (approx. US$2.18 billion) and consolidated revenue of VND 62.5 trillion (approx. US$2.55 billion) in 2023, increasing by 62% and 56% YoY respectively. its separate and consolidated after-tax profits were of VND697 billion (approx. US$28.5 million) and VND344 billion (approx. US$14 million) respectively.
 
In the fourth quarter of 2023 alone, the separate and consolidated revenues reached VND14.9 trillion (approx. US$609.47 million) and VND18.8 trillion (approx. US$768.86 million), surging by 89% and 49% YOY respectively. Quarterly separate and consolidated after-tax profits, meanwhile, were reported at VND70 billion (approx. US$2.85 million) and VND152 billion (approx. US$6.21 million) respectively.
 
Ancillary and cargo revenue amounted to VND18.9 trillion (approx. US$773.08 million), reflecting a robust YoY growth of 46%. This accounted for 40% of the airline’s total air transport revenue.
 
As of December 31, 2023, Vietjet’s total assets totaled more than VND84.6 trillion (approx. US$3.46 billion), increasing by a quarter over the beginning of the year following the airline’s investments in three new-generation A321neo aircraft. The company’s debt-to-equity ratio was at 2, well below the typical global range of between 3 and 5. Vietjet’s liquidity ratio stood at 1.24, which was within good range of the aviation industry. The cash and cash equivalents balance as of December 31, 2023 was reported at VND5.021 trillion (approx. US$205.38 million), more than double the previous year’s, ensuring the airline’s financial capacity. The airline also had one of the best credit ratings according to the criteria of the Ministry of Finance. It has also received the highest credit rating (VnBBB-) among Vietnamese airlines in 2023. In 2023, Vietjet paid approximately VND5.2 trillion (approx. US$212.3 million) of direct and indirect taxes and fees.
 
To meet operational demands, Vietjet continued to invest in a modern, safe and eco-friendly fleet. As of December 31, 2023, Vietjet’s fleet consisted of 105 aircraft, including the wide-body A330s. Having embarked on a journey to reduce carbon emissions over ten years ago with only three aircraft, by 2023, Vietjet’s fleet has grown significantly, contributing remarkably to the company’s success by optimizing resources, saving up to 15-20% of fuel, and particularly focusing on environmental protection and sustainable development through the implementation of green technologies.
 
Contributing to trade between Vietnam and the United States, Vietjet last year reached an agreement with Boeing for the continued delivery of 200 737 MAX aircraft over the next 5 years, as well as aircraft financing agreements with foreign financial institutions worth billions of US dollars.
 
The airline achieved an average load factor rate of 87% and a technical reliability rate of 99.72%. Vietjet also launched the SkyJoy loyalty program, allowing frequent passengers to redeem rewards with over 250 brands. It reached the 10 million members milestone in 2023. Vietjet also rolled out new innovative and convenient products and services for passengers. The”Fly now Pay later” service offer passengers with financial assistance for their flights. Vietjet’s Galaxy Pay payment gateway ensures secure and convenient payments through various payment methods, including Apple Pay which Vietjet is the first Vietnamese airline to accept.

Meanwhile, Vietjet’s passengers are entitled to online check-in at 18 airports in Vietnam. Vietjet was again honoured one of the safest low-cost airlines in the world by AirlineRatings, a reputable organization in evaluating airline services and safety. Prioritizing safety as the utmost concern, the airline organized numerous conferences, training courses, and simulations on safety and security last year. These included the Quality and Safety Conference, ISAGO (International Standard for Ground Operations) safety training, and emergency response simulations, all aimed at proactively ensuring security and absolute safety for flight operations. 

In 2023, Vietjet launched an Aircraft Maintenance Centre of international standards in cooperation with Lao Airlines in Vientiane. With this, Vietjet has taken a proactive approach to aircraft maintenance work following its investment into ground handling services. Realizing its strategy and vision to develop and build a workforce of international standards, the Vietjet Aviation Academy (VJAA) has become a training partner of the International Air Transport Association (IATA) in 2023.

VJAA trained over 97,000 students through 6,300 courses, actively providing training for pilots and aircraft maintenance staff (CRS) in the last year. The academy also launched its third flight simulator, becoming a top-notch pilot training center in the region. Vietjet’s ground services center (VJGS) has operated efficiently, enhancing the quality of ground services while reducing operational costs at Noi Bai International Airport.
 
Contributing significantly to the development of tourism, investment, trade, and cultural exchange, Vietjet in 2023 has set its own records in international network expansion and annual revenue.