The following is a press release. The material and information inside is their own.
Bangkok, August 3, 2020) – Vietjet Aviation Joint Stock Company (HOSE: VJC) today reports its business result of 2020’s second quarter, the period that saw the most impact by Covid-19 pandemic. Accordingly, the carrier operated a flight network of 52 domestic routes with 14,000 flights and transported more than two million passengers during the quarter.
By the end of Q2/2020, amid the Covid-19 pandemic, Vietjet records air transport revenue at VND1,970 billion (approx. US$84.5 million), a decrease of 54% year-on-year, and a loss of VND1,122 billion (approx. US$48 million). For the whole first six months of the year, the airline’s loss in air transportation business stands at VND2,111 billion (approx. US$90.5 million), which is considered a modest number compared to the total loss of over US$84 billion for the global aviation industry.
To support for its cash flow, Vietjet has proactively sought for partners and implemented many financial solutions such as asset transfer and financial investment, which resulted in a financial revenue of VND1,174 billion (approx. US$50.4 million) with a post-tax consolidated profit of VND1,063 billion (approx. US$45.6 million) in Q2/2020 and a consolidated profit of VND73 billion (approx. US$3.2 million) in H1/2020, increasing financial resource for the airline’s air transport business. These results were achieved thanks to the solid financial base, which the company has accumulated for the past years.
As Vietnam opened its sky for domestic operation in June, Vietjet resumed all of its domestic flight network with 300 daily flights, a triple to five times growth compared to those at the country’s Covid-19 pandemic peak. The airline also launched eight new routes to meet rising domestic travel demand, increasing its total domestic flight network to 52 routes with overall flight operated reached 14,000 flights. Its total passenger carriage reached 1.2 million passengers in June, marking a positive recovery for the domestic market.
With the cost optimization advantages following the models of LCCs worldwide, Vietjet has been proactively implementing cost-saving measures with an average cost drop of 55% due to operation capacity reduction of 30%-35% and service cost decrease around 20%-25%. Especially in May, Vietjet successfully stocked up on fuel when the fuel price was low, leading to a cost reduction of 25% compared to the market price. In addition, the carrier was also in talk with suppliers for a reduction of 20% up to 45% of charge for airport handling, technical activities and other services.
The airline’s total asset is VND48,392 billion (approx. US$2.075 billion) with the owner’s equity being at VND17,339 billion (approx. US$745 million) including treasury shares. Its current liquidity is kept at a good rate at 1.4 while debt to equity ratio is 0.57, which are among the lowest rates in the global aviation industry. It allows Vietjet to proceed with its long-term financing plan in order to enhance its internal resources for fighting the current pandemic.
In conclusion, the airline’s results in air transportation business and financial activities are considered to be positive, making it the very few airlines in the world to cope well with the Covid-19 pandemic.
The new-age carrier Vietjet has not only revolutionized the aviation industry in Vietnam but also been a pioneering airline across the region and around the world. With a focus on cost management ability, effective operations and performance, Vietjet offers flying opportunities with cost-saving and flexible fares as well as diversified services to meet customers’ demands.
Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline was awarded the highest ranking for safety with 7 stars in 2018 and 2019 by the world’s only safety and product rating website AirlineRatings.com and listed as one of the world’s 50 best airlines for healthy financing and operations by Airfinance Journal in 2018 and 2019. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others.
Further information at www.vietjetair.com