Vietjet reports positive results in half-yearly financial statements

Vietjet Aviation Joint Stock Company has released its half-yearly audited financial statements for 2021 which saw a bigger profit after tax of the parent company over its compiled reports.

According to the financial statements audited by the PwC, Vietjet's parent company had its transport revenue reach VND5,022 billion (approx. US$220.2 million) for the first six months this year. Its profit after tax was reported at VND34.2 billion (approx. US$1.5 million), a year-on-year leap of 102% thanks to profits gained from new project investments.

The audited profit after tax has also increased by 148% compared to that in Vietjet's compiled reports.

Vietjet posted its consolidated revenue at VND7,556 billion (approx. US$331.2 million) while the consolidated profit after tax reached VND121.8 billion (approx. US$5.3 million), showing a remarkable year-on-year growth of 161%.

Vietjet's assets totaled VND49,855 billion (approx. US$2.18 billion) while its owner equity was at VND16,975 billion (approx. US$742.9 million) including treasury shares. Its liquidity ratio remained at 1.31 while the debt-to-equity ratio stayed at as low as 0.51. Such good financial indicators, which are in the lowest and safest group in the aviation industry, allow Vietjet to keep rolling out its plan for mid- and long-term capital mobilization to strengthen its balance sheet.

Vietjet has transported more than 4.8 million of passengers on 34,000 flights over the first six months of the year. The airline has also focused on refining operation protocols and promoting its cargo operations, resulting in a 40%-45% year-on-year growth with a total of more than 37,000 tons of cargo delivered.

Vietjet has opened six new direct flights from Da Lat, Nha Trang, Thanh Hoa, Vinh and Da Nang to Phu Quoc Island while introducing a safe and favorable travel package to promote the island's economic recovery.

The airline has kept its costs well under control via a series of renovation, innovation and creativity programs and solutions to cut costs. Consequently, the average operating costs per flying hour was down by 71% while the costs of sales and administration declined by 30% year-on-year.

Vietjet together with its strategic partners have played a very active role in the national fight against the COVID-19 pandemic. It has donated to the National Vaccine Fund, granted medical equipment and cooked charity meals while airlifted thousands of healthcare workers, millions of vaccine doses and hundreds of tons of medical supplies to the pandemic-stricken localities.

The airline was among the first to pilot the IATA Travel Pass in order to gradually resume safe flights. Vietjet was also hailed as one of top safest and best low-cost airlines in the world, receiving the highest safety ranking of 7 stars by the airline safety review site Airline Ratings.

In efforts to catch up with the 4.0 industry trend, Vietjet is focusing on digital transformation to develop systems being more convenient to customers while facilitating cargo transport and optimizing flight operations. The airline has been proactively looking for alternative sources of revenue like air cargo, cost optimization, extended aviation services and financial investments.

In the meantime, the Vietnamese Government is considering several relief policies including exemption and reduction of a number of fees, extension of tax payment deadline, and supports for financial loans to help airlines make through the pandemic.

According to the audited statements, there are positive signs taking into account the fastened COVID-19 vaccine roll-outs in many countries in the world, including Vietnam. It is projected that domestic and international flights will soon be resumed.

As soon as commercials flights take off again in Q4, 2021, Vietjet is ready to wing back into the sky to meet the mounting travel demand, contributing to the economic recovery post-pandemic.