Vietjet Reports Impressive 2023 Performance

Vietjet Aviation Joint Stock Company (HOSE: VJC) has reported impressive business performance for 2023.

The company has expanded its international network, accelerating the recovery and development of tourism, investment, and trade in the Asia-Pacific region.

In 2023, Vietjet operated 133,000 flights with 25.3 million passengers (excluding Vietjet Thailand) – a surge of 183% YoY, with more than 7.6 million on international flights.

Vietjet last year continued to grow its network with 33 new international and domestic routes, bringing the total number of routes to 125, including 80 international and 45 domestic routes.

Vietjet has become the first airline to connect Vietnam with the five largest cities in Australia, including Sydney, Melbourne, Perth, Adelaide, and Brisbane. The airline is also the largest operator between Vietnam and India, with routes connecting Vietnam with the cities of Delhi, Mumbai, Ahmedabad, Kochi, and Tiruchirappalli.

Vietjet’s cargo volume totalled 81,500 tons, an increase of 73% YoY.

Vietjet reported separate revenue of VND53.6 trillion (approx. US$2.18 billion) and consolidated revenue of VND 62.5 trillion (approx. US$2.55 billion) in 2023, increasing by 62% and 56% YoY respectively. its separate and consolidated after-tax profits were of VND697 billion (approx. US$28.5 million) and VND344 billion (approx. US$14 million) respectively.

In the fourth quarter of 2023 alone, the separate and consolidated revenues reached VND14.9 trillion (approx. US$609.47 million) and VND18.8 trillion (approx. US$768.86 million), surging by 89% and 49% YOY respectively. Quarterly separate and consolidated after-tax profits, meanwhile, were reported at VND70 billion (approx. US$2.85 million) and VND152 billion (approx. US$6.21 million) respectively.

Ancillary and cargo revenue amounted to VND18.9 trillion (approx. US$773.08 million), a strong YoY growth of 46%. It accounted for 40% of the airline’s total air transport revenue.

As of December 31, 2023, Vietjet’s total assets totalled more than VND84.6 trillion (approx. US$3.46 billion), increasing by a quarter over the beginning of the year following the airline’s investments in three new-generation A321neo aircraft.

The company’s debt-to-equity ratio was at 2, well below the typical global range of between 3 and 5. The cash and cash equivalents balance as of December 31, 2023, was reported at VND5.021 trillion (approx. US$205.38 million), more than double the previous year’s, ensuring the airline’s financial capacity.

The airline received the highest credit rating (VnBBB-) among Vietnamese airlines in 2023.

As of December 31, 2023, Vietjet’s fleet consisted of 105 aircraft, including the wide-body A330s.

Contributing to trade between Vietnam and the United States, Vietjet last year reached an agreement with Boeing for the continued delivery of 200 737 MAX aircraft over the next 5 years.

The airline’s average load factor rate reached 87% and the technical reliability rate was 99.72%. Vietjet also launched the SkyJoy loyalty program, allowing frequent passengers to redeem rewards with over 250 brands. It has reached the 10 million member milestone in 2023.

Vietjet also rolled out new innovative and convenient products and services for passengers. The “Fly first Pay Later” service offers passengers financial assistance for their flights. Vietjet’s Galaxy Pay payment gateway ensures secure and convenient payments through various payment methods, including Apple Pay which Vietjet is the first Vietnamese airline to accept. Meanwhile, Vietjet’s passengers are entitled to online check-in at 18 airports in Vietnam.

Vietjet was again honoured as one of the safest low-cost airlines in the world by AirlineRatings, a reputable organization in evaluating airline services and safety.

Realizing its strategy and vision to develop and build a workforce of international standards, the Vietjet Aviation Academy (VJAA) has become a training partner of the International Air Transport Association (IATA) in 2023.

VJAA trained over 97,000 students through 6,300 courses, actively providing training for pilots and aircraft maintenance staff (CRS) last year. The academy also launched its third flight simulator, becoming a top-notch pilot training center in the region.