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Trade - Service
Jul 30, 2018 / 23:56

Vietjet Air posts 26% increase in profit in 6 months

Nguyen Tung

Vietjet Air announced its business results in the second quarter of 2018 with robust growth in core business activities including air transport and ancillary revenue.

No-frills carrier Vietjet Air's revenue of the first six months soot at VND21.2 trillion (US$914.2 million), up 29% year-on-year, while its profit before tax stood at VND2.37 trillion (US$102.2 million), up 26% year-on-year, the firm said in a statement.
 
Illustrative photo.
Illustrative photo.
In the January - June period, the carrier's transport revenue reached VND16.48 trillion (US$710.6 million), an increase of 52.6% year-on-year, leading to a profit of VND1.68 trillion (US$72.43 million), up 53.4% year-on-year and equivalent to 56.2% of the 2018 plan.

Air transport revenue in the second quarter reached VND8.58 trillion (US$370 million) compared to VND5.64 trillion (US$243.2 million) in the same period of 2017, marking an increase of 52.05%.

The airline's profit before tax of air transport in the second quarter reached over VND950 billion (US$40.96 million) compared to VND661 billion (US$28.5 million) in the same period last year (an increase of 43,7%). In which the proportion of ancillary revenue was up to 24%, approximately USD16 per passenger, the highest ever.

While the load factor in the second quarter was up 28% year-on-year because the carriers were active in regulating their load factor when the oil price increased, the air transport in the second quarter increased by more than 52% which helped boost the operating profit by over 43% in the context of oil price rising from USD82.5/barrel to USD88.92/barrel.

In the April - June period, Vietjet Air carried over 5.8 million passengers, an increase of 28% year-on-year, of which 4.2 million domestic passengers increased by 12.7%, and more than 1.6 international passengers, an increase of 96% over the same period of 2017.

Thanks to the strong growth of fleet, including the modern Airbus A321 Neo and expansion of longer routes to Northeast Asia, international flights promoted the sales of meals, souvenirs, baggage in flights, the ancillary revenue in the first half of 2018 reached to VND3.8 trillion (US$163.8 million), an 50% increase over the first six months of 2017.

According to its plan, in 2018, Vietjet Air will take delivery of 17 Airbus aircraft. In the first 6 months, the airline received four Airbus A321 aircraft and the remaining will be delivered in the second half of the year.

In the middle of July, Vietjet Air signed agreements to purchase 100 Boeing 737MAX aircraft worth US$12.7 billion and 50 Airbus A321 NEO worth US$7 billion. 

Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).

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