(Ho Chi Minh City, June 27, 2020) – Today Vietjet Aviation Joint Stock Company (HOSE: VJC) held its 2020 Annual General Shareholders’ Meeting (AGM) to review its business results from 2019, vote for the approval of audited financial statement and discuss the company’s development plan for 2020.
According to the Executive Board’s report from the AGM, 2019 continued to reveal the airline’s strong growth and sustainable development with positive business results. Also, 2019 marked an important milestone in the new-age carrier’s journey as the airline celebrated transporting 100 million passengers.
In 2019, the audited air transport revenue reached VND41,252 billion and VND3,869 billion in profit before tax, an increase of 22% and 27% respectively compared to 2018. Vietjet’s consolidated pre-tax revenue and profit in 2019 were VND50,603 billion and VND4,569 billion respectively.
Noticeably, Vietjet’s ancillary revenue was VND11,340 billion in 2019, up by 36% compared to 2018. The portion of ancillary revenue in the airline’s total air transportation revenue also increased from 25.3% in 2018 to 30.4% in 2019, making Vietjet one of the top ranking airlines globally in terms of ancillary revenue over total revenue ratio.
Also in 2019, Vietjet added 34 new routes, increasing the flight network to 139 routes, which was composed of 44 domestic routes and 95 international routes, carrying more than 25 million passengers, reaching the accumulated transported passenger up to 100 million, creating a solid base for Vietjet’s post-pandemic rebound.
In the same year, Vietjet Aviation Academy continued to invest, aware that expansion will play a critical role in the airline’s sustainable development plan. The airline’s academy is now one of the region's leading modern-scale, specialized institutions for aviation training.
Vietjet was also honored to receive a number of prestigious awards in 2019 such as ASEAN’s Best Aviation Enterprise Award from ASIAN-BAC. The airline was also named ‘Asia Pacific Low Cost Carrier of the Year’ by CAPA and one of Vietnam's 50 best listed companies in 2019 by Forbes. The airline was also listed in the Top 50 airlines for healthy financing and operations for the second consecutive year by AirFinance Journal.
All of these successes achieved in 2019 have helped Vietjet become a major airline that significantly contributes to the development of Vietnam’s aviation industry as well as both the national and global economic recovery.
Since the beginning of 2020 up to now, Vietnam aviation industry has been impacted severely in the wake of Covid-19 pandemic. However, the country has quickly resumed all domestic operations, so is one stage ahead of most other countries in the world.
As soon as the domestic market resumed, Vietjet quickly implemented a campaign called “Returning to the sky” and inaugurated eight new routes, increasing the domestic flight network to a total of 53 routes. Thai Vietjet is also the first airline to reopen operations in Phuket Airport, expanding its network with five new domestic routes in Thailand.
After completing the resumption and expansion of the domestic flight network, Vietjet and the Vietnam aviation are ready for the return to international skies from July onwards, with a careful preparation to control the epidemic and ensure medical safety for its passengers and staff while contributing significantly to economic and investment recovery.
Currently, the Vietnamese government is implementing many practical programs and solutions to support airlines such as tax and fee reductions and loans with low rates. Based on this reality, it is expected that Vietjet will operate 90 aircraft with over 118,000 flights and transport more than 20 million passengers by the end of 2020.
Specifically in 2020, Vietjet will concentrate to carry out cost-optimizing solutions such as fostering its cargo service, aircraft purchase, diversifying credit loans solutions and expanding self-serving ground operation, and aim for the air transport, its core business, to reach break-even point by the end of 2020.
The carrier will also continue to strongly grow its loyal customer base and boost the effectiveness of financial activities and applications on e-commerce platforms while digitally transforming operating systems and procedure by applying advanced management software and programs in operation as well as thoroughly arranging flight routes and fleet.
In the context that the aviation industry globally is facing a large-scale challenge, Vietjet shareholders are excited to vote on the plan to pay a dividend of 2019 up to 50% by share. This is the result of the financial accumulation gained from the airline’s sustainable, safe and effective development in recent time.
Amid the global crisis sparked by the Covid-19 pandemic, thanks to the resources of a robust management system, the airline’s modern fleet and flexible business strategies, especially its strong financial capacity, Vietjet has created a foundation for recovery and will look to seize all opportunities for sustainable development from 2020 onwards.