Vietjet reports strong first quarter

SINGAPORE, 7 May 2019 – Vietjet’s air transport revenue improved by nearly 28% during the first quarter of 2019 driven by network expansion.

In its first-quarter financial report, the airline said international route revenue surpassed domestic revenue reaching 55% of total revenue.

In the first quarter of 2019, Vietjet launched four international and two domestic routes, giving it 111 routes in its network.

Vietjet operated 33,646 flights in the same period, covering destinations on its flight network within Vietnam and internationally in Japan, Hong Kong (China), Singapore, South Korea, Taiwan (China), Thailand, Myanmar, Malaysia, Cambodia, and China.

Air transport profit before tax reached VND923 billion (approximately USD39.6 million), up to 25.3% year-on-year, while consolidated profit before tax reached VND 1,648 billion (approximately USD70.8 million), an 11.3% increase.

During the first quarter, Vietjet did not have a sale and leaseback transaction, compared to four sale and leaseback transactions in the first quarter of 2018.

As a result, Vietjet’s core revenue from air transport in 2019’s first quarter reached VND10,071 billion (approximately USD432.5 million), an increase of nearly 28%. Ancillary revenue reached VND2,647 billion (approximately USD113.7 million), up  45.1%.

The proportion of ancillary revenue in air transport revenue continued to increase from 23.1% in QI of 2018 to 25.4% at the end of 2018, reaching 26.3% at the end of QI of 2019.

Consequently, business results in 2019 so far continuously exceeded forecasted targets with consolidated revenue reaching VND13,636 billion (approximately USD585.6 million) and consolidated profit after tax reaching VND1,463 billion (approximately USD 62.8 million), equivalent to an increment of 9% and 7% year-on-year respectively.

Vietjet has reached 23.4% of this year’s revenue plan so far and 26.5% of its profit projection. As of 31 March, equity was over VND15,507 billion (approximately USD665.9 million), an increase of 34.6% year-on-year and 10.5% more than 2018 of the same period.