Vietjet, one of the fastest-growing airlines in South East Asia has reported a significant increase in international passengers in the first half of FY23 and now accounts for more than 50 per cent of the total 6.9 million international passengers to and from Vietnam.
In the second quarter of 2023, the airline opened 11 new international routes to Australia, Indonesia, and India, expanding its flight network to 120 routes (75 international and 45 domestic).
Vietjet has expanded its network to India which is home to over 1.4 billion people, operating 7 routes connecting Hanoi and Ho Chi Minh City with the four major Indian cities: Mumbai, New Delhi, Ahmedabad, and Kochi.
Vietjet’s entry into the market has increased the total number of passengers travelling between Vietnam and India in the first six months of 2023 to over 300,000, nearly five times higher than the 70,000 passengers recorded in the same period last year.
Commenting on the impressive result AirlineRatings.com Editor-in-Chief Geoffrey Thomas said that Vietjet has emerged as Vietnam’s global ambassador helping with trade and cultural ties and connecting the country to more and more destinations.
“This is an outstanding result and is really putting Vietnamese tourism and trade on the global map,” Mr Thomas said.
“Vietjet’s importance to the Vietnamese economy, particularly tourism, cannot be understated, evidenced by its impact on inbound India and Australian markets where passenger numbers have soared.
“Vietnam’s tourism industry is set to really take off and Vietjet is to be congratulated on its role as the country’s leading airline,” Mr Thomas added.
Since mid-April, the airline has opened three direct routes in a row from Ho Chi Minh City – Vietnam’s economic, cultural, and tourism metropolis – to the three largest cities in Australia: Sydney, Melbourne, and Brisbane.
Since Vietjet launched its flights in April, the number of passengers has doubled, giving way to the projection of over one million passengers by the end of the year. Meanwhile, the fourth route to Australia, connecting Ho Chi Minh City with Perth, is set ready to launch this November.
In the Northeast Asian market, Vietjet is operating the largest network between Vietnam/Southeast Asia and South Korea (14 routes), Taiwan (8 routes), Japan (7 routes), and over 50 destinations in mainland China.
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In the first six months of FY23, Vietjet’s consolidated revenue was VND29,770 billion (US$1.25 billion), climbing by 87 per cent. Ancillary revenue maintained a solid growth rate, reaching VND9,000 billion (US$378.68 million) – a two-fold increase over the year-ago period and accounting for 40 per cent of total revenue. Consolidated after-tax profit was recorded at VND387 billion (US$16.3 million).
Vietjet operated 65,900 flights, transporting over 12.1 million passengers an increase of 30 per cent making it Vietnam’s leading domestic and international airline.
The average seat utilization rate was over 85 per cent while the reliability rate stood at 99.63 per cent. Vietjet’s fleet consists of 103 aircraft, including 7 wide-body A330s.
The airline has used eco-friendly materials such as meal trays made from local bamboo and areca palm leaves. Vietjet has also accelerated the application of technology and digital transformation, moving towards paperless operations and streamlining processes to improve efficiency and minimize unintended environmental impacts.
As of June 30, 2023, Vietjet’s total assets reached over VND71,500 billion (US$3.01 billion) while the debt/equity ratio and the liquidity ratio was 1.2 and 1.5 respectively.
Vietjet has received a BB+ credit rating with a Stable outlook (VnBB+) from Saigon Ratings.
