A Vietjet aircraft lands at Lien Khuong airport in Lam Dong province. (Photo courtesy of Vietjet)HCM City (VNA) - Vietjet Aviation Joint Stock Company has released itsfinancial results for the first quarter of 2021 with positive indications ofrecovery.
According to the company’spress release on May 4, the quarterly revenue and post-tax profit of Vietjet’sparent company totaled 2,845 billion VND (approx. 23.3 million USD) and 110billion VND (4.77 million USD) respectively. Its consolidated revenue andconsolidated post-tax profit for Q1/2021 were 4,048 billion VND (175.7 millionUSD) and 123 billion VND (5.3 million USD), respectively. Vietjet gained suchprofit from investments in finance and projects and develop new aviation servicesto offset the stagnant air transport business.
Vietjet has also transferred all of its owned treasury shares in thefirst quarter to strengthen its balance sheet and cash flow in support of theair transport sector.
The airline still maintained its efficient cost control throughinnovative and creative programmes and measures to cut back on expenditures whileoptimisingfleet operations with a 52 percent of cost reduction and a year-on-yeardecrease of 39 percent of costs for ancillary sale and administration.
Vietjet has transported nearly3.6 million of passengers on more than 21,000 flights over the first threemonths of the year. Its On-time Performance (OTP) rate has stayed at the globalhigh of over 90 percent.
Vietjet was one of the firstairlines to have fully resumed the domestic flight network and even opened morenew routes to meet the increasing travelling demand post-Tet holiday and in thesummer. Such routes have helped localities to kick-start their economicrecovery.
The airline has also introduced several promotions including the zero Vietnam dongtickets, voucher offerings worth of 100,000 VND and 50,000 VND or a free 20kg check-inluggage.
Apart from passenger transport, Vietjet has come up with different measures toincrease the ancillary revenue which now accounts for nearly 50 percent of theairline’s total revenue.
Its cargo services have alsoturned more diverse in terms of product range which was developed closely basedon the sentiment of the logistics market in order to meet the mounting cargodelivery demand. In Q1/2021, Swift247 Joint Stock Company, which has 67 percentof shares owned by Vietjet, has launched a new online air cargo services namedSWIFT Mega to deliver heavy freight on Vietjet’s extensive flight network. Intotal, Vietjet has transported 18,000 tonnes of freight in the first quarter of2021.
The airline has won the “Belly carrier of the year”and the “Low-cost carrier of the year” awards by cargo magazine Payload Asia inlate January this year.
Paying an extra attention to the safety and health of the passengers andthe flight crew, Vietjet has been strictly following the COVID-19 preventionmeasures of the World Health Organization (WHO), the International AirTransport Association (IATA), aviation authorities and health agencies to helppassengers and flight crew stay safe. Vietjet was hailed as one of top 10safest and best low-cost airlines in the world in 2020 by AirlineRatings. Italso received the highest safety ranking of 7 stars regarding COVID-19prevention measures implemented by airlines.
In the coming months, Vietjetis focusing on digital transformation to maximize its capabilities andoperating effectiveness. It is also pushing ahead negotiations with servicessuppliers for appropriate discounts while proactively looking for alternativesources of revenue like air cargo and extended aviation services. The airlineplans to carry out financial investments and projects to ensure itsbusiness strategy is done in an effective and sustainable manner.
Vietjet has installed the second flight simulator (SIM) at VietjetAviation Academy (VJAA) which is expected to start operating in May, 2021. Itwill fundamentally increase the VJAA’s training capabilities, making it one ofthe most modern and advanced training facilities in the region for aviationmanpower in Vietnam and the world.
Vietjet is expected to kick off a series of technical and physical infrastructureprojects plus an investment in a technology park. The airline is stepping up preparationsto welcome top aviation experts and activities, aiming to make Vietjet one ofthe top airlines in the world./.
VNA
