Vietjet reports US$48.5 million loss in Q2

The company said it has resumed all of its domestic flights.

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Hanoi-based low-cost carrier Vietjet reported US$48 million in operating losses for the April to June period, as air transport revenue declined 54 percent year-on-year due to the effects of the COVID-19 pandemic on aviation worldwide. The company said it has resumed all of its domestic flights when Vietnam opened up for internal operations with 300 daily flights in June. The airline also launched eight new routes to meet rising domestic travel demand, increasing its total domestic flight network to 52 routes with a total of 14,000 flights operated. Its total passenger carriage reached 1.2 million passengers in June.

Vietjet said it has been implementing cost-saving measures with an average cost drop of 55 percent due to an operation capacity reduction of 30-35 percent and a service cost decrease of around 20-25 percent. In May, Vietjet stocked up on fuel reserves when prices were low, leading to a cost reduction of 25 percent compared to the market price. The carrier was also in talks with suppliers for a reduction of 20 percent up to 45 percent of the charge for airport handling, technical activities and other services.

The company also said it has expanded its cargo transportation business, further developed its SkyBoss product and ancillary services and started offering “Power Pass”, an unlimited flight pass. The carrier also started self-serve ground operations at Noi Bai International Airport in Hanoi and increased charter services.


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