Vietjet Aviation Joint Stock Company (HOSE code: VJC) announced its Q3 business results with strong growth although September was not the peak season of aviation and tourism industries. Accordingly, the revenue stood at approximately VND12,713 billion, an increase of 105% year on year thanks to the growth in air transport, ancillary and sale & leaseback revenue. Total profit before tax in Q3 reached to VND1,709 billion, an 59% increase year on year.
Thanks to the adding of new, modern fleet along with the opening of new international routes, flexible seat capacity management in the low season, the air transport revenue of this quarter reached to VND8,901 billion, an increase of 45% year on year and the load factor stood at approximately 89%.
The air transport profit of Q3 was VND1,094 billion, equivalent to 111% the same period last year. Ancillary products and services also grew dramatically with VND2,177 billion revenue, an increment of 55% year on year.
The operation of new aged A320/A321neo aircraft which could save up to 16% fuel cost, in addition to international flight network expansion, and the fuel price in foreign markets is lower than in domestic market by around 30% (due to tax and fee policies of foreign countries), which help Vietjet decrease its cost per available seat kilometer (CASK) included fuel cost. Advanced programs in operation will save operation cost ex-fuel by around 5%.
In Q3, Vietjet received 3 more new aircraft, and the total number of operating aircraft until the end of 2018 is 65.
After 9 months of 2018, Vietjet continued to have the most flights and best growth with 89,690 flights, an increase of approximately 22%, transported 16,882,117 passengers, kept the leading position in the domestic air transport market. The international revenue ratio reached to over 50% of total operation revenue, exceeded its plan.
Revenue as of Q3/2018 reached to VND33,934 thousand billion, profit before tax was VND3,681 billion, up to 30% over the same period 2017. The transport revenue stood at VND25,413 billion, exceeded by 50% year on year and the air transport profit after tax stood at VND2,280 billion, reached to 76 % of 2018 yearly plan. When the oil prices fluctuated, air transport revenue came from the well cost management, including fuel cost.
The on-time performance stood at 83.5%. The technical reliability was 99.66% with the safety performance of flight, ground operation indicators amongst the top in the region. Vietjet operates 103 routes including 39 domestic and 64 international routes, covering destinations in Vietnam as well as international destinations in Japan, China, Hong Kong, Singapore, South Korea, Taiwan, Thailand, Myanmar, Malaysia, Cambodia.
Vietjet Aviation Academy was also finished the construction, equipment installation, expected to launch in November. Vietjet Aviation Academy and its equipment were evaluated and approved to meet the European standards – the world’s leading standard, by the European Aviation Safety Agency (EASA). This is an important milestone in the Vietjet development, modernizes the education and training, contributes to help Vietjet Aviation Academy reach to the regional and international level.
In Q3, Vietjet was awarded the world’s highest ranking for safety with 7 stars by AirlineRatings.com, the world’s leading reputation for airline’s safety and product rating agency. "Vietjet Air has become an important part of Vietnam’s way of life bringing affordable fares to many. The airline has a very modern fleet of Airbus aircraft and operationally is now up there with the very best. That is great news for the traveling public and tourists,” said the leader of AirlineRatings.com Geoffey Thomas.
The growth steps of Vietjet were recognized by many awards including Vietnam’s top 50 best listed companies and top 40 most valuable brands of Vietnam 2018 by Forbes magazine, top 100 biggest tax prayers in Vietnam, the Pioneering Airline at the Guide Awards 2018 etc.. The airline also was listed in the 22nd in the world’s 50 best airlines worldwide for finance indicators by Airfinance Journal, the world’s leading magazine in the aviation finance sector, with better ranking than many prestigious airlines.
With the positive business results in 9 months, Vietjet expects to exceed its planned revenue and profit of 2018.