Vietjet has reported a increase of international passengers, at 3.5 million, in the first half of 2023, accounting for more than 50% of the total 6.9 million international passengers to and from Vietnam. In the second quarter of 2023, the airline opened 11 new international routes to Australia, Indonesia, and India, expanding its flight network to 120 routes (of which 75 international and 45 domestic). This has made air travel the most convenient, cost-effective means of transport for individuals and businesses between Vietnam and Southeast Asian region and major international markets such as Australia, India, Kazakhstan, Northeast Asia, and beyond.
Vietjet has aggressively expanded its network to India which is home to over 1.4 billion people, operating 7 routes connecting Hanoi and Ho Chi Minh City with the four major Indian cities: Mumbai, New Delhi, Ahmedabad, and Kochi. Vietjet’s entry into the market has increased the total number of passengers traveling between Vietnam and India in the first six months of 2023 to over 300,000, nearly five times higher than 70,000 passengers recorded in the same period last year. Vietjet since mid-April has also opened three direct routes in a row from Ho Chi Minh City -Vietnam’s economic, cultural, and tourism metropolis – to the three largest cities in Australia: Sydney, Melbourne, and Brisbane.
According to the airline’s data, the number of international passengers on the Vietnam-Australiaroute averaged merely 500,000 a year prior to 2023. Since Vietjet launched its flights in April, however, the number of weekly passengers has doubled, giving way to the projection of over onemillion passengers by the end of the year. Meanwhile, the fourth route to Australia, connecting Ho Chi Minh City with Perth, is set ready to launch this November.
In the Northeast Asian market, Vietjet has been for years operating the largest network between Vietnam/Southeast Asia and South Korea (14 routes), Taiwan (8 routes), Japan (7 routes), and kept expanding to over 50 destinations in mainland China. This further solidifies Vietjet’s position as a multinational airline and an air ambassador in the global aviation industry.
In the first 6 months of 2023, Vietjet’s consolidated revenue was VND29,770 billion (approx. US$1.25 billion), soaring by 87% YoY and scoring120% of the H1 target. Ancillary revenue maintained a high growth rate, reaching VND9,000 billion (approx. US$378.68 million) – a two-fold increase YoY and accounting for 40% of the total revenue. Consolidated after-tax profit was recorded at VND387 billion (approx. US$16.3 million).
Vietjet has safely operated 65,900 flights, transporting over 12.1 million passengers – a YoY increase of 30%. The airline has been the market leader in terms of passenger numbers, both on domestic and international routes. The average seat utilisation rate was over 85% while the technical reliability rate stood at 99.63%. Vietjet’s fleet consists of 103 aircraft, including 7 wide-body. Vietjet also operates a new fleet of aircraft and had large orders with Airbus and Boeing, gaining advantages in operational efficiency and financial performance.
As of June 30, 2023, Vietjet’s total assets reached over VND71,500 billion (approx. US$3.01 billion) while the debt/equity ratio and the liquidity ratio was 1.2 and 1.5 respectively, which were all within good range of the aviation industry. Vietjet has received a BB+ credit rating with a Stable outlook (VnBB+) from Saigon Ratings. Ithighly regarded Vietjet’s financial capabilities with solid capital structure, low debt ratio, and resourceful liquidity. Additionally, commercial advantage and diversified business platform helped Vietjet maintain its shareholder capital after the Covid-19 pandemic.
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