Vietjet Aviation has reported a solid performance over the first nine months of 2023. In the third quarter of 2023, Vietjet safely operated 36,000 flights, carrying 6.8 million passengers including 2.3 million international travellers, representing a 10% increase compared to the third quarter of 2019, before the pandemic, and an astounding 127% year-on-year growth.
During the first nine months of 2023, Vietnam welcomed 23.7 million international passengers through its airports, skyrocketing by 267% YoY. Vietnamese airlines played a pivotal role in this growth, with Vietjet alone transporting 5.9 million travellers, accounting for 51% of the total and significantly contributing to inbound tourism and international investments.
The Vietjet fleet now comprises 103 aircraft, including 18 operated by Thai Vietjet, with two brand new aircraft currently being delivered. The airline boasts an average seat utilisation rate of over 85% and a technical reliability rate of 99.72%. Vietjet's total transported cargo volume surged to 20,300 tons, a remarkable 76% YoY growth, securing a 23% market share among Vietnamese airlines.
In Q3/2023, Vietjet reported separate and consolidated revenues of VND 13,548 trillion (approx. MYR 2.73 billion) and VND 14,235 trillion (approx. MYR 2.87 billion), respectively, marking a 32% and 23% YoY growth. After-tax profits reached VND 579 billion (approx. MYR 117 million), up by 175%, and consolidated profits reaching VND 55 billion (approx. MYR 11.11 million), reflecting a 30% YoY increase.
Vietjet’s international passenger traffic increased by 201% YoY. It accounted for more than 57% of the total passenger revenue and 35% of the total number of flights and passengers.
Vietjet also focused on ancillary and cargo revenue, which had relatively high profit margins. Their revenue, which reached VND5,029 billion (approx. MYR 1.01 billion) in total, accounted for 40% of the airline’s total air transport-related revenue and grew by 26% YoY and 77% over which in Q3/2019.
As of September 30, 2023, Vietjet's total assets reached over VND76,500 billion (approx. MYR 15.47 billion). The debt-to-equity ratio stood at 1.5 times while the liquidity ratio was 1.4 times, resting within safe levels of the aviation industry.
Vietjet has attracted the interest of local and foreign investors and in Q3/2023, Vietjet reached preliminary agreements with three Vietnam-based institutional investors committing to invest US$100 million (approx. MYR 416 million), bolstering the airline's financial capacity for growth, network expansion, and fleet expansion. These investment transactions are expected to conclude in the fourth quarter of 2023.
The airline, with stable operations and development, has been upgraded to VnBBB- credit rating from VnBB+ with a stable outlook by Saigon Ratings, Vietnam’s first independent credit rating agency.
Meanwhile, Vietjet has announced that it will add three more international services to its expanding international flight network, connecting Hanoi to Siem Reap (Cambodia) and Jakarta (Indonesia), and Ho Chi Minh City to Shanghai (China) from this December. The airline will also operate Ho Chi Minh City - Dien Bien route by the year-end period.
The new route linking Ho Chi Minh City with Shanghai (Pudong International Airport) enter into service from December 1 2023 with seven round-trip flights per week. The Hanoi - Jakarta route will be inaugurated on December 10, 2023 with four round-trip flights per week on Mondays, Wednesdays, Fridays, and Sundays. From December 15, 2023, Vietjet will also launch Hanoi-Siem Reap service, connecting Noi Bai International Airport to Siem Reap-Angkor International Airport (SAI) with seven round trips per week.
In Vietnam, Vietjet launches Ho Chi Minh City - Dien Bien route from December 2, 2023. The two-hour service will operate thrice weekly on Tuesdays, Thursdays, and Saturdays.