Vietjet Aviation Joint Stock Company (Hose: VJC) financial statements of the third quarter of 2022 highlights Vietjet’s lead in the growth rate of domestic and international passengers, promoting local economic recovery and inbound tourism.
In Q3/2022, Vietjet operated more than 35,000 flights with 6.4 million passengers onboard. Domestic passenger transport contributed to the recovery with the total number of flights and passengers increasing by 36% and 44% respectively while recovery in international passenger transport is set in motion, reaching about 25% of the pre-Covid-19’s level. The total volume of cargo airlifted in Q3 was 11,500 tons.
Vietjet has operated 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 have reached 87.7 thousand and 15.4 million respectively, which in turn surged by 150% and 225% YOY.
Vietjet reports its Q3/2022 revenue of VND10,256 billion (separated) (approx. THB15.6 billion) and VND11,600 billion (consolidated) (approx. THB 17.6 billion), leaping by 652% and 337% YOY. Following its 9 months of 2022, Vietjet has completed 85% of its revenue plan.
As of September 30, 2022, Vietjet has total assets of VND 67,470 billion (approx. THB 102.5 billion). The debt-to-equity ratio stayed at 1.1, considered as good indicator in the aviation industry.
Regarding air transport business, Vietjet recorded an after-tax loss of VND 767 billion (separated) (approx. THB 1.16 billion) and an after-tax profit of 43 billion dong (consolidated) (approx. THB 65.3 million). Losses for air transport were down by more than 50% 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 was making 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 up to VND3,048 billion (approx.. THB 4.65 billion) 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 Lunar New Year while preparing for 2023.
Vietjet is one of the airlines leading the global recovery with an overwhelming revenue growth rate of 150% 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. Consolidated profit was owing to commercial aircraft finance trade from existing orders with Airbus and Boeing amid a supply shortage in the global aircraft market. 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 the 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’s.
In Q4-2022, Vietjet is 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. Due to economic conditions in Vietnam, the airline could not receive as much financial support from the state as in developed countries. Vietjet has proactively expanded its business activities, strengthened its financial standing with the support of shareholders, investors, domestic and foreign partners. The company was 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.