Vietjet’s audited report for H1 2021 posts higher profit in air transport

Tuesday, Sep 21, 2021 09:08

Vietjet planes land at Tan Son Nhat International Airport in HCM City. — Photo courtesy of Vietjet

Vietjet Aviation Joint Stock Company (HOSE: VJC) has released its half-year audited financial statements for 2021, which saw a bigger post-tax profit of the parent company over its compiled reports.

According to the financial statements audited by PwC, Vietjet as a parent company had its transport revenue surpassing VNDD5 trillion (US$220 million) for the past six months of this year. Its profit after tax was at VND34.2 billion ($1.5 million), a year-on-year leap of 102 per cent thanks to profits gained from new project investments.

The airline’s audited after-tax profit has also increased by 148 per cent compared to that in its compiled reports.

During the period, Vietjet posted its consolidated revenue at over VND7.55 trillion while the consolidated profit after tax reached VND121.8 billion, showing a remarkable year-on-year growth of 161 per cent.

Vietjet’s assets exceeded VND49.85 trillion while its owner equity was at over VND16.97 trillion including treasury shares. Its liquidity ratio remained at 1.31 while the debt-to-equity ratio stayed at as low as 0.51.

Good financial indicators, which are in the lowest and safest group in the aviation industry, allow Vietjet to keep rolling out its plan for mid- and long-term capital mobilisation to strengthen its balance sheet, the company said in a statement.

From January to June, Vietjet had transported more than 4.8 million passengers on 34,000 flights. The airline also focused on refining operation protocols and promoting its cargo operations, resulting in a 40-45 per cent year-on-year growth with a total of more than 37,000 tonnes of cargo delivered.

Vietjet had opened six new direct flights from Da Lat, Nha Trang, Thanh Hoa, Vinh and Da Nang to Phu Quoc Island while introducing a safe and favourable travel package to promote the island’s economic recovery.

The airline had also kept its costs well under control via a series of renovation, innovation and creativity programmes and solutions to cut costs. Consequently, the average operating costs per flying hour was down by 71 per cent while the costs of sales and administration declined by 30 per cent year-on-year.

Vietjet together with its strategic partners played a very active role in the national fight against the COVID-19 pandemic. It had donated to the National Vaccine Fund, granted medical equipment and cooked charity meals while airlifted thousands of healthcare workers, millions of vaccine doses and hundreds of tonnes of medical supplies to the pandemic-stricken localities.

The airline was among the first to pilot the IATA Travel Pass in order to gradually resume safe flights. Vietjet was also hailed as one of the world’s top safest and best low-cost airlines by receiving the highest safety ranking of 7 stars by the airline safety review site Airline Ratings.

In efforts to catch up with the fourth industrial revolution, Vietjet is focusing on digital transformation to develop systems that are more convenient for customers while facilitating cargo transport and optimising flight operations, the airline said.

The carrier added it would continue to proactively look for alternative sources of revenue like air cargo, cost optimisation, extended aviation services and financial investments.

In the meantime, the Vietnamese Government is considering several relief policies including exemption and reduction of several fees, an extension of tax payment deadline, and support in terms of financial loans to help airlines make it through the pandemic.

According to the audited statements, there are positive signs considering the accelerated COVID-19 vaccine rollouts in many countries, including Viet Nam.

As soon as commercials flights take off again later in 2021, Vietjet is ready to return to the sky to meet the mounting travel demand, contributing to the economic recovery post-pandemic.— VNS

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