Vietjet revenue increases 6.5 times in Q3 2022, forecasts to gain higher revenue in Q4 2022

Vietjet Aviation Joint Stock Company has released its third-quarter financial statement for 2022. The results highlight Vietjet’s growth in domestic and international passengers and the promotion of local economic recovery and inbound tourism.

During the third quarter of 2022, Vietjet operated more than 35,000 flights with 6.4 million passengers onboard. From a Post-Covid-19 perspective, the recovery of domestic passenger transport has begun to move upwards with the total number of flights and passengers increasing by 36 per cent and 44 per cent respectively. The recovery in international passenger transport was also set in motion, reaching about 25 per cent of pre-Covid-19 level. Total volume of cargo airlifted in the third quarter was 11,500 tons.

Vietjet has opened operations in more than 10 new international routes, focusing on the Indian market to bring passengers from big cities in India’s West and Central-Southern region to the economic and tourism hubs of Vietnam, including Hanoi, Ho Chi Minh City, Da Nang and Phu Quoc. As of September 30, 2022, Vietjet has operated 84 routes, including 49 domestic and 35 international routes.

During the first nine months of 2022, the accumulated number of flights and passengers were 87.7 thousand and 15.4 million respectively, which is a surge of 150 per cent and 225 per cent YOY.

Vietjet reported revenue of VND10,256 billion (Separated) (INR34 billion and US$412 million approx.) and VND11,600 billion (consolidated) (INR38 billion and US$466 million approx.) in the third quarter of 2022, leaping by 652 per cent and 337 per cent YOY. Following its 9 months of 2022, Vietjet has completed 85 per cent of its revenue plan.

As of September 30, 2022, Vietjet has total assets of VND 67,470 billion (INR 223 billion and US$ 2.7 billion approx.). The debt-to-equity ratio stayed at 1.1, which is considered to be a healthy indicator in the aviation industry.

With regards to air transport business, Vietjet recorded an after-tax loss of VND 767 billion (separated) (INR 2 billion and US$30.75 million approx.) and an after-tax profit of 43 billion dong (Consolidated) (INR 14 million and $1.72 million approx.). Losses for air transport were down by more than 50 per cent compared to 2020’s and 2021’s. However, a hike in jet fuel price at an average of 130 USD/barrel compared to the average of 80 USD/barrel in 2019 made an impact on the airline’s business. Though the air transport business for the last 9 months has yet to break even, the airline has paid VND3,048 billion (INR10billion approx.) of direct and indirect taxes and fees to the State. Vietjet is focusing on promotions, especially with international routes to attract passengers during peak season of Christmas and the Lunar New Year while preparing for 2023.

Vietjet is one of the airlines that is leading the global recovery with an overwhelming revenue growth rate of 150 per cent for the first 9 months of 2022.

Air transport operation depends on several objective factors such as epidemics and fuel price. In response to that, Vietjet has steered toward a multi-sectoral strategy besides air transport to adapt itself to a new period of development. The airline also gained its revenue from investments in other business and service projects.

Vietjet is gradually improving its services and utilities, striving to enhance customer experience; promoting and diversifying revenue from ancillary services of which the e-wallet payment service developed by Vietjet has reported revenue since the end of Q3/2022. The subsidiary company of ground handling service has recorded positive revenue and profit. Revenue from the pilot and aviation personnel training business nearly doubled the previous year.

In Q4-2022, Vietjet has forecast to gain higher revenue due to an expecting strong growth of passengers, especially in international markets. Vietjet has overcome the pandemic proactively and resiliently. Vietjet has proactively expanded its business activities, strengthened its financial standing with the support of shareholders, investors, domestic and foreign partners. The company was able to facilitate all available resources for transportation of passengers and goods at affordable price, contributing to the recovery of economy tourism and trade while meeting the travel demand of the people.