Vietjet posts Q4 after-tax profit and profitable 2020

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(PHOTO: Vietjet)

Use this oneVietjet Aviation said Sunday (31 January) that it earned an after-tax profit of US$11.9 million for the fourth quarter of 2020 and for the full year recorded a consolidated after-tax profit of about US$3 million. The company said ancillary revenue accounted for nearly 50 percent of the airline’s total revenue, “showcasing Vietjet’s efforts to promote ancillary services to offset decreasing air travel revenue”.

Vietjet last year configured some of its passenger aircraft for freight transportation while applying new operational methods to strengthen its cargo service capacity. The airline was the first in Vietnam approved to deploy cargo operations in the passenger cabin. It has since delivered more than 60,000 tonnes of cargo internationally, seeing its freight revenue rise by 75 percent in the fourth quarter. In 2020, air cargo growth was recorded at 16 percent. Through interline agreements, Vietjet’s cargo for the first time also landed in the US and Europe. Vietjet won the “Belly carrier of the year” and the “Low-cost carrier of the year” awards by cargo magazine Payload Asia.

In 2020, Vietjet launched Vietjet Ground Services Centre at Noi Bai International Airport in Hanoi. The airline said this has helped it better manage its operating costs while improving brand recognition and service quality. Vietjet said it has made “drastic cuts” to operating expenses by optimising fleet operations, negotiating 20-25 percent discounts with suppliers while bringing down at least 10 percent of daily operating costs. The airline also successfully hedged jet fuel in May 2020, helping to save 25 percent of fuel costs.

Vietjet said it has resumed its entire domestic network of more than 47 routes. The airline has received support from the government for tax discounts, tax-payment extensions and reductions in landing/take-off fees, ground services fees and air control fees, as well as being considered for the government’s financial aid proposal for local airlines.

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