(Ho Chi Minh City, July 30th, 2018) – Vietjet announced its business results in the second quarter of 2018 with the robust growth in core business activities including air transport and ancillary revenue.
Air transport revenue in the second quarter reached to VND8,588 billion compared to VND5,648 billion in the same period of 2017 (an increase of 52.05%); profit before tax of air transport in the second quarter reached to over VND950 billion compared to VND661 billion in the same period last year (an increase of 43,7%). In which the proportion of ancillary revenue was up to 24%, approximately USD16 per passenger, the highest ever.
While the load factor in the second quarter was up 28% year on year because the carriers were active in regulating their load factor when the oil price increased, the air transport in the second quarter increased by more than 52% which helped boost the operating profit by over 43% in the context of oil price (MOPS JET A1) rising from USD82.5/barrel to USD88.92/barrel. This results confirmed that the company’s efficiency operating ability was assured even when the oil price increased, by regulating the load factor, saving operating cost, increasing ancillary revenue.
In Q2/2018 Vietjet carried over 5.8 million passengers, an increase of 28%, of which 4.2 million domestic passengers increased by 12.7%, and more than 1.6 international passengers, an increase of 96% over the same period of 2017.
Accumulated air transport revenue in the first 6 months of 2018 reached to VND16,478 billion, an increase of 52.6%. Air transport profit stood at VND1,686 billion, an increase of 53.4% over the same period of 2017, finished 56.2% of the 2018 plan.
Thanks to the strong growth of fleet, including the modern Airbus A321 Neo and expansion of longer routes to Northeast Asia, international flights promoted the sales of meals, souvenirs, baggage etc. in flights, the ancillary revenue in the first half of 2018 reached to VND3,807 billion, an 50% increase over the first half of 2017.
In the first 6 months of 2018, Vietjet continued to lead the domestic passenger traffic and be the best operating flight growth airline with 59,944 flights, up nearly 22%. The technical reliability was 99.66% with the safety performance of flight, ground operation indicators amongst the top in the region. The on-time performance stood at 83%.
Total revenue of the first 6 months 2018 stood at VND21,197 billion, an 29% increase year on year. Profit before tax of Vietjet in the first half of this year reached to VND2,378 billion, up 26%.
According to its plan, in 2018, Vietjet will receive 17 Airbus aircraft. In the first 6 months Vietjet received 4 Airbus A321 aircraft. In the second half of the year, Vietjet will receive 13 aircraft. As a result, in the last six months of the year, Vietjet will record additional revenue from this aircraft delivery.
In the middle of July, Vietjet signed agreements to purchase 100 Boeing 737MAX aircraft worth USD12.7 billion and 50 Airbus A321 NEO worth USD7 billion, assuring that by 2025 the company’s new fleet will be synchronized, well-equipped and fuel efficient, serve for the plan to establish aviation alliance in the region and in the international market.
Started operating new modern aircraft which could save up to 15% fuel cost, efficient management program as well as international flight network expansion, Vietjet continued to boost the foreign currency ticket sales, increase the proportion of ancillary revenue and decrease fuel cost because the fuel price in foreign countries is lower than in domestic market by around 30% due to taxes, fees. In addition to manage flexibly the load factor of domestic routes in the low season, focus on the international routes and wet-leasesing abroad, help increase efficency, boost the foreign exchange earnings, stabilize the revenue.
In the second quarter, Vietjet has finished the construction of Aviation Academy in cooperation with Airbus, which been installing equipment to be in operation in the next quarter, ensuring a stable training, reducing time and cost of regular pilot training.
With the positive business results in the first 6 months and preparation steps for the plan for the last 6 month of 2018, Vietjet is expected to exceed its 2018 plan.