Low-cost carrier Vietjet sets sights high with $1.8b annual profit target

Saturday, Apr 20, 2019 07:27

Shareholders at Vietjet's annual general shareholders’ meeting held in HCM City on Friday. — VNS Photo

Vietjet Aviation Joint Stock Company is aiming for nearly VND42.3 trillion (US$1.8 billion) air transport revenue in 2019, 25 per cent higher than last year’s figure.

The company also hopes to earn air transport profit of VND3.8 trillion ($163 million) this year. These targets were announced at the company’s annual general shareholders’ meeting held in HCM City yesterday.

This year, Vietjet will focus on international route expansion to promote foreign currency revenue from ticketing, take advantage of lower international fuel prices and increase its ancillary revenue.

According to Vietjet, it plans to open 20 new international routes by the end of this year, transporting nearly 28 million passengers. Currently, it operates about 400 flights daily on 113 routes covering destinations across Viet Nam and several other countries.

In the next three years, Vietjet aims to maintain its position in domestic transport, expand international routes, invest in developing the aviation’s infrastructure and enhance human resource training.

By the end of 2018, Vietjet posted positive business performance, transporting more than 23 million passengers on nearly 12,000 flights with an on-time performance (OTP) rate of 84.2 per cent, compared to the global OTP average of 78.7 per cent.

According to the company’s audited finance results, Vietjet earned total revenue of VND53.6 trillion and pre-tax profit of VND5.8 trillion last year.

Despite rising oil prices, the company’s air transport revenue hit VND33.8 trillion, up 50 per cent year-on-year while air transport profit before tax saw a yearly rise of 49 per cent.

These figures showed the company’s ability to grow revenue and good cost management which fueled its business growth in 2018, Vietjet said.

During the period, Vietjet’s ancillary revenue topped VND8.4 trillion, up 54 per cent year-on-year. The proportion of this segment in total revenue also increased from 24.5 per cent in 2017 to 25.4 per cent in 2018.

The company’s total consolidated assets were VND39 trillion as of December 31, 2018, up 24 per cent year-on-year, and its equity recorded a yearly increase of 33 per cent to VND14 trillion.

With positive business results in 2018, shareholders decided to pay a 55 per cent dividend in both cash and shares.

During the meeting, shareholders agreed to select Donal Joseph Boylan as an independent director of the company’s Board of Directors for 2017–22. Born in 1963, Boylan has more than 30 years of experiences in aviation and air financial industry.

The company’s shares (Code VJC) rose 0.8 per cent on Friday to VND114,900 on the Ho Chi Minh Stock Exchange. — VNS

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