Vietjet’s 2024 Goals: 27M Passengers & 25% Dividend

May 2, 2024

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Vietjet Aviation Joint Stock Company has set the skies ablaze with its audacious goals for 2024, unveiled during its recent General Meeting of Shareholders (GMS). The company aims to soar to new heights by targeting 27 million passengers and a remarkable 25% dividend payout amidst a staggering Q1 revenue surge, clocking in at an impressive US$701 million.

The aviation juggernaut’s ambitious business plan for 2024 outlines a relentless pursuit of dominance in both domestic and international markets. Vietjet, already a titan in its domestic domain, seeks to fortify its leading position while aggressively expanding its international flight network to encompass burgeoning destinations in South Asia, Central Asia, Australia, Europe, and beyond.

Bolstered by its stellar performance in Q1 of 2024, Vietjet is poised for a triumphant year ahead. The company’s air transport and consolidated revenue are projected to soar to VND59 trillion (approx. US$2.32 billion) and VND65.5 trillion (approx. US$2.57 billion), respectively, marking a notable 10% and 12.4% year-over-year increase. With an ambitious target of 142,000 flights and over 27.4 million passengers, Vietjet is set to carve its name further into the annals of aviation history.

Furthermore, Vietjet’s Board of Directors has greenlit an enticing profit distribution plan for 2024, promising dividends and advanced dividends in cash and stock at a maximum ratio of 25%. This bold move underscores Vietjet’s commitment to rewarding its shareholders while maintaining its sustainable growth trajectory.

The stellar performance of Q1/2024 serves as a harbinger of the company’s formidable prowess. Vietjet’s air transport revenue surged to an astounding VND17.76 trillion (approx. US$701 million), accompanied by an after-tax profit of VND520 billion (approx. US$20.5 million), marking a substantial 38% and 209% year-over-year increase respectively. Consolidated revenue and after-tax profit witnessed similar meteoric rises, reaching VND17.79 trillion (approx. US$702.4 million) and VND539 billion (approx. US$21.3 million), respectively.

During the first quarter, Vietjet operated nearly 34,500 flights, transporting over 6.3 million passengers with an average load factor rate of 87% and a stellar technical reliability rate of 99.6%. The company’s international passenger transport experienced exponential growth, with flights and passenger numbers soaring by more than 53% and 61%, respectively, year over year.

Embracing its strategy of global expansion, Vietjet unveiled 15 new international and domestic routes within three months, augmenting its operational routes to an impressive 140. Notable additions include Phu Quoc—Taipei, Ho Chi Minh City—Chengdu/Xi’an, and Vientiane, alongside Hanoi to Hiroshima and Sydney/Melbourne.

As of March 31, 2024, Vietjet’s total assets surpassed VND85.82 trillion (approx. US$3.38 billion), with a debt-to-equity ratio of 1.9 and a liquidity ratio of 1.3, well within the aviation industry’s favourable ranges.

Beyond its soaring flight network, Vietjet is propelling itself onto the global stage through international research and technology investment projects, further solidifying its position as a pioneering force in the aviation sector.