Vietjet Reports Record Revenue Growth in H1 2024, Surpassing Pre-Pandemic Levels
Vietjet Aviation Joint Stock Company (HOSE: VJC) has released its financial statement for H1 2024, reporting record revenue growth.
In the first six months of 2024, Vietjet’s operations outperformed those of pre-pandemic 2019. The airline transported a total of 13.1 million passengers on 70,154 safe flights in H1 2024.
In Q2 2024, Vietjet reported air transport revenue of VND 15.128 trillion (approx. US$ 601.68 million) and a pre-tax profit of VND 517 billion (approx. US$ 20.57 million), growing by 23% and 683% respectively year-on-year (YoY). Cumulative air transport revenue for the previous six months reached VND 32.893 trillion (approx. US$ 1.3 billion), up 31% YoY. Pre-tax profit was recorded at VND 1.174 trillion (approx. US$ 46.77 million), surging by 690% YoY.
Vietjet reported H1 consolidated revenue of VND 34.016 trillion (approx. US$ 1.35 billion) and consolidated pre-tax profit of VND 1.311 trillion (approx. US$ 52.22 million), increasing by 15% and 433% respectively YoY. The profit exceeded 21% of the H1 target.
As of June 30, 2024, Vietjet’s total assets reached over VND 91.755 trillion (approx. US$ 3.65 billion). The debt-to-equity ratio remained around 2, while the global average was 5. Cash and cash equivalents at the end of Q2 were reported at VND 4.1 trillion (approx. US$ 163.18 million).
According to Saigon Ratings, an independent credit rating organization, Vietjet has maintained a long-term credit rating of vnBBB- with a “Stable” outlook. Based on the airline’s remarkable ongoing recovery and proactive preparations for future plans throughout 2022 and 2023, Vietjet is expected to achieve breakthrough developments faster and more sustainably in the medium and long term.
Vietjet paid a total of VND 3.687 trillion (approx. US$ 146.78 million) in direct and indirect taxes and fees in the first half of 2024.
Leading International Expansion
Vietjet is operating more than 149 routes across Vietnam and internationally, including 38 domestic and 111 international routes. Vietjet has launched new routes connecting Ho Chi Minh City with Xi’an (the capital of Shaanxi Province, China), Phu Quoc with Taichung and Kaohsiung (Taiwan, China), and Ho Chi Minh City with Vientiane. The airline has also announced the Nha Trang – Daegu (South Korea) route, expected to commence operations in October 2024. This milestone marks Vietjet as the largest airline in terms of routes connecting Vietnam and South Korea after a decade-long journey that saw 10 million passengers fly across more than 37 routes between the two countries.
Regarding the Asia-Australia transcontinental route, Vietjet has added two routes from Hanoi to Melbourne and Sydney, bringing the total number of routes between Vietnam and Australia to seven. This expansion further facilitates bilateral travel, tourism, investment, trade, overseas study, and family visits. Along with the five routes from Ho Chi Minh City to the largest cities in Australia, Vietjet now operates the most routes between Vietnam and Australia with 58 flights per week.
Growing a Modern, Green Fleet
Operating a fleet of more than 105 aircraft (including Vietjet Thailand), with an annually growing number of passengers, Vietjet is actively expanding its flight network transcontinentally and developing a new, modern, and environmentally friendly fleet. Embracing a strategy and vision of building and developing aviation human resources of international standards, Vietjet Aviation Academy (VJAA) has become a training partner of the International Air Transport Association (IATA).
In the first half of 2024, VJAA trained more than 43,000 students in 3,898 courses, including pilots and aircraft engineers (CRS). The academy also put the third simulation cockpit into operation, continuing to be the leading international pilot training center in the region. Vietjet has welcomed many trainees to study in a multinational working environment, providing them with knowledge and practical experience. The airline also collaborates with universities for career orientation for students, introducing work opportunities at Vietjet.
During flights on National Unification Day (April 30) and International Labor Day (May 1), Vietjet introduced the image of a reformed and integrated Vietnam. During Children’s Day (June 1), International Women’s Day (March 8), Valentine’s Day (February 14), and other occasions, Vietjet flights were filled with a festive mood, offering unexpected and meaningful gifts for passengers.
At the 2024 Tourism Festival, Vietjet led the Summer Parade, leaving a great impression on locals and international tourists with its meaningful message “Protect the blue planet” to promote environment and wildlife protection for a bright future for all. Vietjet is pioneering research for the development and use of sustainable aviation fuel, aiming to become a green airline that leads in technology and activities associated with sustainable development.
To increase capacity for the development of the global flight network, Vietjet and Airbus signed an order for 20 new generation wide-body A330neo (A330-900) aircraft worth US$ 7.4 billion at the Farnborough International Airshow 2024.
Vietjet was honored by International Finance as the “Best Low-cost Airline in Southeast Asia” and “Best Finance-Management-Aviation-Vietnam”; “Best Ultra Low-cost Airline” and “Best Low-cost Airline Onboard Hospitality” by AirlineRatings; and was listed in Forbes’ top 50 best listed companies in Vietnam in 2024.
The year 2024 has marked the airline’s new milestone of comprehensive development with its expansive mid-range international network, ready to meet domestic transport demand while preparing for even more international routes.
Additionally, in India, the airline has established several strategic expansions, operating a total of 29 weekly round-trip flights and creating direct connections between Vietnam and four key Indian cities – New Delhi, Mumbai, Ahmedabad, and Kochi. VietJet’s footprint and connectivity between Vietnam and India are well established, expanding through modern fleets, dedicated crews, and attractive promotions specific to Indian customers.