The new-age carrier Vietjet continued to have a year of high and sustainable growth in 2018. The airline’s total number of passengers transported in 2018 reached 23 million, leading Vietnam’s domestic market with 66 international routes, accounting for nearly two-thirds of its entire flight network.
Vietjet Aviation Joint Stock Company (HOSE code: VJC) announced its audited financial statements for 2018, which exceeds its plan.
2018 continues to be the year of high and sustainable growth for Vietjet. Audited business results of 2018 showed its total revenue of VND53,577 billion (approx.2,300 million USD) and VND5,816 billion (approx. 250 million USD) profit before tax.
Vietjet also maintains the ratio of dividend payout at 50% per year, including shares and cash dividends as committed when the airline was first listed. In 2018, with positive business results, Vietjet expects to pay 55% dividend.
Remarkably, in the context of rising oil prices by 30%, air transport revenue reached to VND33,779 billion and air transport profit before tax was VND3,045 billion (approx. 1,460 million USD), increasing respectively by 49.8% and 48.9% over the previous year, which showed the company’s ability to grow revenue and its good cost management. It can be seen that Vietjet’s strong growth in 2018 comes from its core business of air transport services.
Ancillary revenue, which has a high profit margin, was VND8,410 billion (approx. 362 million USD) , an increase of 53.5% year on year. The proportion of this segment in total revenue has also increased from 24.5% in 2017 to 25.4% in 2018.
Besides, there are very positive financial indicators.
As to December 31st, 2018, the total consolidated assets reached VND39,086 billion (approx. 1,685 million USD), an increase of 23.5% year on year; equity was VND14.038, up 32.5% year on year. The Company’s cash balance as at December 31st, 2018 was VND7,165 billion. Debt to equity ratio decreased to 1.78 in 2018 from 1.99 in 2017. Similarly, net debt per equity ratio was very good, sharply decreased to 0.39 in 2018 from 0.71 in 2017.
Vietjet has been the leading the domestic market in terms of transported passengers and strongly developed international flight network, operated 118,923 flights on 105 routes, including 39 domestic and 66 international ones, covering destinations in Vietnam and Japan, Hong Kong (China), Singapore, South Korea and Taiwan (China), Thailand, Myanmar, Malaysia, Cambodia, China…, Vietjet’s aircraft also operate at Dubai and Doha airports. The international network expansion strategy of Vietjet was highly promoted in order to increase the foreign currency collection from ticket sales and to take advantage of lower fuel price at international markets. The proportion of international revenue surpassed domestic revenue and reached 48% of total revenue.
Load factor of the year reached to over 88.06%, the technical reliability was 99.64% and the on-time performance (OTP) stood at 84.2%.
In 2018, Vietjet began to receive and operate the new generation A321neo aircraft which could save up to 16% fuel cost, contributing to decreasing Vietjet’s operating costs in the coming years. Vietjet’s fleet as of 31st December 2018 was one of the youngest over the world with just average 2.82 year old.
Vietjet also has been successfully qualified with “IOSA International Air Safety” 3rd certificate in September 2018. Vietjet’s safety-operating indicators have been among the leading airlines in the Asia-Pacific region and awarded the highest ranking for safety with 7-stars in 2018 by the world’s only safety and product rating website AirlineRatings.com.
Investing in sustainable development of the airline, in 2018, Vietjet Aviation Academy completed and its flight simulator complex (SIM) in partnership with Airbus were approved by European Aviation Safety Agency – EASA, certifying European standards – the world’s leading aviation standards. At the beginning of November 2018, on the occasion of the official visit of French Prime Minister to Vietnam, Vietjet launched the Aviation Academy.
Until the end of last year, SIM provided approximately 1.000 training hours. The Academy conducted 924 courses for 21.611 trainees, including 157 pilot training courses, 127 cabin crew training courses and 128 engineer training ones.
Besides, Vietjet was granted many prestigious awards in 2018 including Labor Medal, Vietnam’s top 50 listed companies and top 40 most valuable brands of Forbes Magazine, Top 50 airlines for healthy financing and operations of AirFinance Journal, Top 50 largest taxpayers in Vietnam, 50 best performing companies, Top 100 best working places in Vietnam, Asian best flight attendant wardrobe..
Vietjet’s continuous and sustainable development in the past few years and business results exceeding the 2018 plan, continuing to bring values, efficiency to investors, create momentum to fulfill the mission of offering flying opportunities to everyone, becoming the regional and international airline.
