Vietjet Aviation, the budget carrier controlled by Vietnam’s first self-made female billionaire, Thi Phuong Thao Nguyen, is making waves in the aviation industry. The airline reported substantial revenue and profit growth in the third quarter of this year, with separate and consolidated revenues reaching approximately $551.38 million and $579.34 million, respectively. This remarkable performance comes amid a robust post-pandemic earnings recovery for the airline.
Moreover, Vietjet Air has secured a significant financial boost with $100 million in funding. Preliminary agreements were signed during the third quarter with three Vietnam-based institutional investors, whose identities remain undisclosed. “They will enhance the airline’s financial capacity from equity capital to meet the needs of growth, investment, network expansion, and fleet expansion,” reads Vietjet’s statement released on Tuesday. According to the Vietnamese airline, the investment transactions are expected to be completed in the fourth quarter of 2023.
As of September 30, 2023, Vietjet’s total assets soared to over $3.11 billion, and the airline’s financial ratios “resting within safe levels of the aviation industry.” Vietjet continues to play a pivotal role in driving the economy, commerce, and tourism, attracting investments and agreements with reputable global organizations.
Q3 Growth, Commitment to ‘Fly Green’
Vietjet achieved outstanding operational milestones during the third quarter of 2023. The budget airline safely operated an impressive 36,000 flights, catering to 6.8 million passengers, including 2.3 million international travelers. This performance showcased a remarkable 10% increase compared to the same period in 2019 and a substantial 127% year-on-year growth.
Vietnam, in the first nine months of 2023, experienced a tourism boom, welcoming 23.7 million international passengers, a remarkable 267% year-on-year increase. Vietjet played a pivotal role in this, facilitating the travel of 5.9 million of these travelers, thus contributing significantly to tourism and international investment in the country.
Vietjet’s fleet, comprising 103 aircraft, demonstrated impressive seat utilization and technical reliability rates. The airline transported 20,300 tonnes of cargo, solidifying its hold on a substantial 23% market share among Vietnamese airlines. Additionally, it expanded its reach by adding seven new international routes to its network, bringing the total to 125, including flights to five major Australian cities. This strategic expansion not only met the demand for travel but also contributed to the bilateral development of tourism, trade, and investment.
International passenger transport has witnessed rapid growth for Vietjet, accounting for over 57% of the total passenger revenue and 35% of the total number of flights and passengers. Additionally, the airline has been focused on boosting ancillary and cargo revenue, which now contributes a significant 40% of their total air transport-related revenue.
Vietjet’s commitment to excellence has earned it numerous international and domestic awards, including “Asia’s Leading Airline for Customer Experience.” The airline constantly introduces new and innovative products and services for its customers, ensuring a top-notch travel experience.
Beyond business, Vietjet is dedicated to environmental and community responsibilities. In October 2023, the airline launched the “Fly Green” fundraising program, symbolizing its commitment to environmental protection. For every ticket sold, Vietjet contributes VND5,000 (approximately $20 cents) to support environmental protection programs.