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Vietjet makes astonishing recovery after pandemic
Monday,  Jun 29, 2020,20:45 (GMT+7)

Vietjet makes astonishing recovery after pandemic

Vietjet Aviation Joint Stock Company (Code: VJC) on June 27 held its shareholders meeting to review its performance in 2019 and approve its audited financial statement for 2019 and the company’s development plan for 2020.

In 2019, the air carrier continued to achieve a high growth rate and sustainable development with outstanding business results. Last year was an important landmark in the new generation airline’s achievement to carry 100 million passengers.

Last year, Vietjet’s revenue from air transport and pre-tax profit reached some VND41.3 trillion and VND3.9 trillion, up 22% and 27% year-on-year, respectively. Its consolidated revenue and pre-tax profit were around VND50.6 trillion and VND4.6 trillion.

Last year was an important landmark in the new generation airline’s achievement to carry 100 million passengers.

In addition, its ancillary revenue was VND11.3 trillion, up 36% over 2018. The proportion of ancillary revenue in the airline’s total air transport revenue increased from 25.3% in 2018 to 30.4% in 2019, making Vietjet one of the airlines reporting the highest ratio of ancillary revenue to total revenue in the world.

The air carrier also opened 34 new air routes, taking the total number of its air routes to 139, including 44 domestic routes and 95 international routes, and carried 25 million passengers, contributing to the realization of its target to serve 100 million passengers. This is a solid foundation for the airline to rebound after the Covid-19 outbreak.
The Vietjet Aviation Academy, which was invested heavily last year, plays an important role in Vietjet’s sustainable development. The academy has become a leading training center in the region.

Vietjet won multiple prizes in 2019, such as the Best Aviation Enterprise 2019 in ASEAN awarded by the ASEAN Business Advisory Council (ASEAN-BAC) and The Asia Pacific Low Cost Carrier of the year presented by the Center for Aviation (CAPA). It was also honored in Forbes’ top 50 best Vietnamese listed companies and AirFinance Journal’s top 50 best airlines in the world in terms of operations and financial health for two years.

Achievements in 2019 have helped Vietjet become an important airline contributing to the development of the aviation sector and the recovery of the local and global economy. 

Since early 2020, Vietnam’s aviation sector has been significantly affected by the Covid-19 pandemic but has made a fast recovery in the domestic market ahead of that in  other countries.

As soon as the local aviation market is recovered, Vietjet has quickly resumed its operations and opened eight new air routes, increasing the number of domestic routes to 53. Thai Vietjet is also the first air carrier to resume air routes from Phuket International Airport in Thailand and launch five new air routes in Thailand.

By the end of 2020, Vietjet expects to operate 90 aircraft with more than 118,000 flights, carrying more than 20 million passengers.

After resuming operations in the local market and introducing new domestic air routes, Vietjet and the local aviation sector are now preparing themselves for resuming international air services from July once the pandemic is put under control to ensure the safety for passengers and the airline’s staff, contributing to the economy and investment recovery.

The Government has issued multiple programs and solutions to support airlines, such as reducing taxes and fees and providing low-cost capital. By the end of 2020, Vietjet expects to operate 90 aircraft with more than 118,000 flights, carrying more than 20 million passengers.

The air carrier also has a plan to focus on controlling expenditures, such as developing its cargo transport services, purchasing more aircraft, diversifying investment solutions, offering more ground services and considering air transport as its core business line in 2020.

Moreover, it will develop a base of loyal customers, enhance the effectiveness of financial activities and applications on the ecommerce platform, apply the digital transformation to its operation system, use modern management software and arrange systematically its flights and fleet.

Although the global aviation sector is facing considerable challenges, Vietjet’s shareholders approved a plan to pay 2019 dividend in shares at 50%. This is the result of its financial accumulation, sustainable and safe development and operation transparency over the years, bringing high values to investors.

Amid complicated developments of the Covid-19 pandemic, Vietjet, with its effective governance, modern aircraft, flexible business strategies and strong financial capacity, has built a foundation to recover and grasp sustainable development opportunities this year and in the following years.

Reach more:

Vietjet officially announces five direct routes to 1.3 billion people market India

Vietjet sees profit increase sharply, highlights India market

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