Vietjet Soars In The First Nine Months Of 2023

Vietjet Aviation Joint Stock Company is flying high reporting an impressive performance over the first 9 months of 2023. 

In Q3/2023, Vietjet safely operated 36,000 flights and transported 6.8 million passengers including 2.3 million international travellers – an increase of 10% over the third quarter of the pre-pandemic 2019 and up to 127% YoY. 

During the first nine months of 2023, Vietnam welcomed 23.7 million international passengers through its airports, soaring by 267%. In particular, Vietnamese airlines carried 11.5 million travellers of which 51% or 5.9 million flew with Vietjet, supporting inbound tourism and international investment. 

Vietjet's fleet consists of 103 aircraft, including 18 operated by Thai Vietjet and 2 new aircraft being on delivery. The airline has reported a high average seat utilization rate of over 85% and a reliability rate of 99.72%.  

The total transported cargo volume reached 20,300 tonnes, growing by 76%. Vietjet accounted for 23% of the cargo market share among Vietnamese airlines. 

While meeting the demand for travel to popular destinations abroad, Vietjet's international routes have contributed to the bilateral development of tourism, trade and investment, offering support to the economic recovery. The airline, in Q3/2023, opened seven new international routes, bringing the total number of routes to 125 (45 domestic and 80 international routes). It is the first airline to have flights connecting Vietnam with the five largest cities in Australia, including Perth, Adelaide, Brisbane, Melbourne, and Sydney. 

Vietjet’s separate and consolidated revenues were reported at VND13,548 trillion (US$551.38 million) and VND14,235 trillion (US$579.34 million) respectively in Q3/2023, increasing by 32% and 23% YoY. Separate and consolidated after-tax profits reached VND579 billion (US$23.58 million) and VND55 billion (US$2.23 million) respectively, up by 175% and 30% YoY. 

Vietjet’s international passenger transport continued to witness rapid growth, increasing by 201% YoY. It accounted for more than 57% of the total passenger revenue and 35% of the total number of flights and passengers. 

Vietjet also focused on ancillary and cargo revenue. Their revenue, which reached VND5,029 billion (US$204.87 million), accounted for 40% of the airline’s total air transport-related revenue and grew by 26% YoY and 77% over Q3/2019. 

As of September 30, 2023, Vietjet's total assets reached over VND76,500 billion (US$3.11 billion). The debt-to-equity ratio stood at 1.5 times while the liquidity ratio was 1.4 times, resting within safe levels of the aviation industry. 

During the official visit of the US President to Vietnam, Vietjet signed an agreement with Boeing on the delivery of 200 737 MAX aircraft worth US$25 billion over the next five years. It also reached an agreement with Carlyle Aviation for aircraft financing worth US$550 million. 

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Vietjet has attracted the attention of many local and foreign investors. In Q3/2023, Vietjet reached preliminary agreements with three Vietnam-based institutional investors committing to invest US$100 million. They will enhance the airline's financial capacity from equity capital to meet the needs of growth, investment, network expansion, and fleet expansion. The investment transactions are expected to be completed in the fourth quarter of 2023. 

The airline has been upgraded to VnBBB- credit rating from VnBB+ with a stable outlook by Saigon Ratings, Vietnam’s first independent credit rating agency. 

The airline has received numerous international and domestic awards, including "Asia's Leading Airline for Customer Experience" by the World Travel Awards, "Top 100 Most Valuable Brands in Vietnam," and "Top 10 Strong Brands for Sustainable Development 2023." Meanwhile, Vietjet SkyJoy was the “New Innovative Product” at the Better Choice Awards. 

The SkyJoy program, dedicated to Vietjet's loyal customers, allows them to redeem rewards with over 250 brands, exchange tickets, and enjoy attractive airfares. The program has had ten million members in the third quarter of 2023. 

While still committing to its mission of realizing the "flying dream" for millions of Vietnamese and international travellers, Vietjet has been all in for environmental and community responsibilities in each locality where it operates. In October 2023, Vietjet launched the Fly Green fundraising program with the meaningful message of "Every red ticket for one green planet”. Accordingly, the airline contributes VND5,000 (approx. US 20 cents) from each ticket sold to the fund to sponsor environmental protection programs.