In 2019, Vietjet sets plan to improve sharply air transport revenue, continues to expand international flight network, increases ancillary revenue proportion
(Ho Chi Minh City, April 19, 2019) - In the morning of April 19, 2019, Vietjet Aviation Joint Stock Company held 2019 Annual General Shareholders’ Meeting. By the end of 2018, the new-age carrier Vietjet continues to record high and sustainable growth in all targets in the context of the national GDP reached to 7.08%, Vietnamese aviation and tourism industries continues to be bright spots of growth and investment attraction.
Vietjet operated 16 new aircraft with an average age of its fleet only 2.82 years. In 2018, Vietjet was the first carrier operating the new generation aircraft A321neo, which could save up to 16% fuel consumption, contribute to Vietjet’s reduction of operating costs.
Last year, Vietjet transported over 23 million passengers in all flight network, operated 118,923 flights with 261,000 safe operating hours, load factor was at 88.06%, technical reliability reached 99.64% and other safety indicators of flight operation, ground operation were one of the leading airlines in Asia Pacific. Its on time performance (OTP) at 84.2% was good compared to OTP average of 78.69% in the world (Source: IATA).
The airline expanded international flight network and improved service quality to boost foreign currency revenue from ticketing, increase ancillary revenue from additional services and maximize fuel cost advantages when the international fuel cost was lower than domestic ones (due to tax, fee policies). In 2018, Vietjet opened 1 new domestic route and 22 international routes.
In 2018, air transport revenue reached to VND33,779 billion, an increase of 49.8% year on year and reached 112.2% of its plan. Air transport profit before tax increased by 48.9% year on year. Ancillary revenue was VND8,410 billion, an increase of 53.5% year on year. The proportion of ancillary revenue in total revenue has also increased from 24.5% in 2017 to 25.4% in 2018 thanks to improvement of international transported passengers, completing SkyBoss ticket class in addition to diversifying additional services such as priority services, seat selection services, sky-shop on board, etc.
When listing in 2017, being one of the first company choosing international IPO standard (Reg S), Vietjet set plan to 3 year 2017 – 2018 - 2019 growth, aiming to get total revenue of VND147,782 billion, VND7,801 billion profit after tax of 2017 and 2018. The results exceeded the forecast in the prospectus when after 2 years the new age carrier had VND95,879 billion revenue and VND10,400 billion profit after tax. Earnings per share (EPS) was VND9,850 in 2018.
Vietjet has a good record of paying high dividends from year to year with over 50%. With positive business results in 2018, shareholders decided to pay 55% dividend in both cash and shares.
In 2018, Vietjet has been successfully qualified with “IOSA International Air Safety” (only 8.6% of the world’s airlines had this certificate), and completed evaluation of ISO 27001 standards. At the same year Vietjet was awarded the highest ranking for safety with 7-stars by the international institution AirlineRatings.com.
Total number employees of Vietjet by December 31, 2018 was 3,850 from over 30 nations to serve international development strategy, an increase of 24.3% year on year. In 2018, Vietjet trained 68 cadets to become pilots.
At the beginning of November 2018, Vietjet launched Aviation Academy with its flight simulatior complex (Full Flight Simulator) in partnership with Airbus. European Aviation Safety Agency – EASA approved and certified European standards – the world’s leading aviation standards. Until the end of last year, flight simulator provided more than 910 training hours. The Academy conducted 924 courses for 21,611 trainees, including 157 pilot training courses, 127 cabin crew training courses and 128 engineer training ones, etc.
Vietjet was granted many prestigious awards in 2018, especially ranking at the 22nd in Top 50 airlines for financial indicators of AirFinance Journal.
In 2019, planning to open more 20 new international routes, transport nearly 28 million passengers, Vietjet expected to increase its air transport revenue to VND42,250 billion and air transport profit at VND3,800 billion. Plans focus on international route expansion to promote foreign currency revenue from ticketing, take advantages from the lower international fuel price than domestic ones, as well as increase ancillary revenue which has higher profit margin from high-income passenger segment.
At the meeting, Mr. Donal Joseph Boylan (born in 1963) was elected as an independent director of Board of Directors for the 2017 – 2022 term. Mr. Boylan has more than 30 years of experiences in aviation and air financial industry, he used to be top leader at large institutions, listed companied in Europe and Hong Kong.
The delegations also listen to Vietjet’s 3 year development orientation report. In the next 3 years, Vietjet aims to maintain its leading position in domestic transport, effectively expand international routes, consider investment opportunities for infrastruture, terminals, technical services, ground services, training to promote the airline’s experience, advantages, efficiency.
Positive results over the years and in 2018 are the basis for building 2019 expectation plans, affirming the company’s good strategy to keep growing momentum, fulfilling the mission to offer flying opportunities to people, supporting tourism development, bringing values, efficiency to investors, becoming safe, efficient, the regional and international carrier.