Vietjet's 2023 Audit Reports Air Transport Revenue Hits US$2.16 Billion

Vietjet Aviation Joint Stock Company (HOSE: VJC) has released its audited financial statements for 2023, which showcase a remarkable year of growth and success.

The audited separate air transport revenue and consolidated revenue were reported at VND53.7 trillion (approx. US$2.16 billion) and VND58.3 trillion (approx. US$2.35 billion), respectively, increasing by 62% and 45% year-on-year. Notably, the company recorded a turnaround of pre-tax air transport profit and consolidated profit at VND471 billion (approx. US$18.98 million) and VND606 billion (approx. US$24.42 million).

Ancillary and cargo revenue reached nearly VND21 trillion (approx. US$846.6 million), representing a growth of over 60% year-on-year and accounting for 39% of the total air transport revenue

As of 31 December 2023, Vietjet's total assets totalled more than VND86.9 trillion (approx. US$3.5 billion). The company's debt-to-equity ratio was 2, well below the typical global range of between 3 and 5. Vietjet's liquidity ratio stood at 1.3, which was within the aviation industry's good range. The cash and cash equivalents balance as of 31 December 2023 was reported at VND5.051 trillion (approx. US$203.62 million), ensuring the airline's financial capacity.

The airline has also been recognised with the highest credit rating (VnBBB-) among Vietnamese corporations, according to guidelines by the Ministry of Finance.

In 2023, Vietjet paid approximately VND5.2 trillion (approx. US$209.63 million) of direct and indirect taxes and fees.

Leading international expansion

In 2023, Vietjet focused on expanding its international routes while maintaining and growing its domestic network. The airline operated 133,000 flights, serving 25.3 million passengers, a remarkable 183% increase year-on-year. Of these passengers, over 7.6 million travelled internationally.

Vietjet launched 33 new domestic and international routes, bringing the total number of routes to 125, including 80 international and 45 domestic routes. Notable routes included Ho Chi Minh City – Shanghai, Ho Chi Minh City – Vientiane, Hanoi - Siem Reap, Hanoi - Hong Kong, Phu Quoc – Taipei, Phu Quoc - and Ho Chi Minh City/ Hanoi - Jakarta.

Vietjet has become the largest operator of flights connecting Vietnam to India and Australia, facilitating trade and tourism between the two countries. In early 2024, the airline inaugurated a direct route between Hanoi and Sydney, bringing the total Vietnam-Australia routes to seven.

Additionally, new routes were launched from Hanoi to Hiroshima (Japan) and Ho Chi Minh City to Chengdu (China), enhancing bilateral tourism and trade opportunities.

Domestically, Vietjet introduced the Hanoi - Dien Bien route, providing travellers access to the historic destination of Dien Bien Phu. The airline achieved an average load factor rate of 87% and a technical reliability rate of 99.72%.

Developing a safe, modern, eco-friendly fleet

Vietjet remains committed to sustainable development, optimising resources, saving fuel, and reducing CO2 emissions with its modern fleet of aircraft. The airline's fleet, which includes 105 aircraft, including wide-body A330s, contributes significantly to these efforts.

Having embarked on its journey to reduce carbon emissions over 10 years ago, by 2023, Vietjet's fleet has grown significantly, contributing significantly to the company's success by optimising resources, saving up to 15-20% of fuel, and particularly focusing on environmental protection, sustainable development, and research on green technologies.

Safety remains Vietjet's top priority, with the airline conducting numerous conferences, including Quality and Safety Conference, ISAGO (International Standard for Ground Operations) safety training, and emergency response simulations to ensure security and absolute safety for flight operations proactively.

Vietjet was again honoured as one of the safest low-cost airlines in the world by Airline Ratings.

The airline's ground services centre operates efficiently, enhancing ground services quality while reducing operational costs. Additionally, Vietjet has established an Aircraft Maintenance Centre of International Standards in cooperation with Lao Airlines in Vientiane.

Vietjet Aviation Academy (VJAA) continues to train pilots and aircraft maintenance staff, with over 97,000 students trained through 6,300 courses in 2023. VJAA has become a top-notch pilot training centre in the region, with the installation of its third flight simulator and has become a training partner of the International Air Transport Association (IATA).

Vietjet's 2023 audit report reflects a year of robust growth and expansion and a commitment to sustainability and safety. With an ever-expanding international network and a focus on innovation and efficiency, Vietjet remains dedicated to meeting the evolving needs of its passengers while contributing to the growth of the aviation industry.