Introduction to Vietjet’s Financial Success in 2024
Vietjet Aviation Joint Stock Company (HOSE: VJC) achieved remarkable financial growth in the first nine months of 2024. The Vietnamese budget airline reported a consolidated revenue of VND 51.769 trillion (approx. US$2.05 billion), alongside robust profits and expanded operations. This performance reflects Vietjet’s steady focus on expanding both its domestic and international routes while maintaining industry-leading operational reliability and safety standards.
Key Financial Highlights and Record-Breaking Passenger Growth
For the first three quarters of 2024, Vietjet’s revenue from air transport surged by 32% year-over-year, reaching VND 51.7 trillion (around US$2.03 billion). This growth showcases the airline’s resilience and strategic approach to capture the rising demand for air travel. Consolidated after-tax profit reached VND 1.4 trillion (approx. US$55.16 million), marking an impressive 564% increase over the previous year.
As a reflection of its growing reach, Vietjet transported over 19.6 million passengers through approximately 104,000 flights during this period. The number of international travellers rose to 2.54 million, representing a year-over-year growth of 9.1%. These figures underscore Vietjet’s position as a leading choice for affordable, reliable air travel in Vietnam and beyond.
Fleet Expansion to Support Vietjet’s Growing Network
Vietjet has strategically invested in expanding its fleet and enhancing its operational capacity. The airline added three new aircraft in October and expects further eco-friendly additions by the year’s end. The current fleet, comprising 85 aircraft, achieved an average seat utilization rate of 87%, with a technical reliability rate of 99.7%, demonstrating the company’s commitment to operational excellence.
In alignment with its growth strategy, Vietjet recently signed a deal with Airbus for 20 A330neo wide-body aircraft valued at US$7.4 billion, underscoring its ambition to serve long-haul routes. Additionally, a partnership with Rolls-Royce was established for the supply of 40 Trent 7000 engines, along with TotalCare services for maintenance. This collaboration is set to reinforce Vietjet’s fleet capabilities and long-haul efficiency.
Growing Route Network and Increasing Connectivity
As of Q3 2024, Vietjet operated an extensive network of 155 routes, including 43 domestic and 112 international routes. New direct connections to key destinations have enhanced travel convenience. Notable routes include:
- Da Nang to Ahmedabad
- Xi’an to Ho Chi Minh City
- Ho Chi Minh City to Perth
Vietjet’s focus on expanding its international network has strengthened connectivity between Vietnam and major regional markets, such as South Korea, Japan, and Hong Kong. This network expansion supports both tourism and trade, boosting Vietjet’s role as a vital transport partner in the Asia-Pacific region.
Record Cargo Volumes and Ancillary Revenue Growth
Apart from passenger operations, Vietjet experienced significant growth in cargo transport, handling 88,964 tons in the first nine months of 2024. This marks a year-over-year increase of 73%, capturing over 10% of the Vietnamese airline freight market. The growth reflects the airline’s strategic push to diversify revenue streams and enhance logistics capabilities within the region.
The ancillary revenue, which reached VND 17.6 trillion (approx. US$693.47 million), accounted for 34% of total air transport revenue. This diversified income source includes services like cargo and inflight amenities, which play a crucial role in sustaining Vietjet’s profitability amidst fluctuating passenger traffic trends.
Financial Stability and Liquidity: Key Metrics
Vietjet’s financial stability remains strong, with total assets reaching nearly VND 94 trillion (approx. US$3.7 billion) as of September 30, 2024. The airline’s debt-to-equity ratio of 2.25 and liquidity ratio of 1.4 are considered safe for sustaining operations in the highly competitive aviation sector. Furthermore, Vietjet’s cash reserves, bank deposits, and cash equivalents were nearly VND 3,997 billion (approx. US$158 million), highlighting the company’s prudent financial management and ensuring sufficient working capital.
Commitment to Sustainability and Innovative Technologies
In its commitment to environmental, social, and governance (ESG) goals, Vietjet has been at the forefront of sustainable aviation fuel (SAF) initiatives. Collaborating with international partners, the airline is actively researching, developing, and using SAF to reduce emissions and promote environmentally friendly practices within the industry.
Vietjet’s dedication to incorporating advanced aviation technology was evident at the 2024 Farnborough International Airshow, where the airline signed several key cooperation agreements. These agreements aim to enhance safety and efficiency through technology-driven solutions, positioning Vietjet as a forward-thinking leader in sustainable aviation.
Supporting Economic Growth and Tourism
Vietjet’s economic impact extends beyond its operations. The airline contributed nearly VND 5.56 trillion (US$219.4 million) in taxes and fees in the first nine months of 2024. By actively supporting tourism, trade, and regional connectivity, Vietjet plays a vital role in boosting the Vietnamese economy and creating employment opportunities.
As a strategic partner to prominent global organizations, Vietjet is committed to strengthening Vietnam’s presence in international markets. The airline’s investments in modern, eco-friendly aircraft and routes to emerging travel destinations reflect its ongoing contribution to Vietnam’s tourism industry and economic development.
Enhancing Customer Experience with a Digital-First Approach
Vietjet’s e-commerce platform has played a pivotal role in elevating customer satisfaction and streamlining travel experiences. The airline continues to prioritize technology-driven solutions, such as mobile check-in and digital booking options, enabling a smoother journey for its passengers. These advancements align with Vietjet’s mission to make flying accessible to everyone while enhancing convenience and personalization.
In line with its goal to serve the “dream of flying” for millions, Vietjet remains focused on delivering superior service and driving innovations that enhance the passenger journey. This commitment underpins Vietjet’s reputation as a reliable and customer-centric airline within the competitive Asian market.
Outlook for Q4 and Beyond
Looking ahead, Vietjet is poised to scale up its operations to meet the peak travel demand in Q4. With plans to introduce additional eco-friendly aircraft, Vietjet aims to solidify its position as a green airline committed to sustainable growth. By maintaining strong financial performance, expanding its route network, and pioneering eco-friendly practices, Vietjet sets an ambitious path toward future growth.
As the airline gears up for the year-end holiday season, it aims to continue leading Vietnam’s aviation sector with cutting-edge technologies, customer-focused initiatives, and responsible corporate practices. Vietjet’s consistent success reflects its steadfast dedication to safety, sustainability, and service quality, cementing its role as a key player in Southeast Asia’s air travel industry.
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