Vietjet Aviation Joint Stock Company (HOSE: VJC) has reported its business results for the second quarter of 2020, a period that was most impacted by the Covid-19 pandemic. The airline operated a flight network of 52 domestic routes with 14,000 flights, transporting more than two million passengers during this period.
At the end of Q2/2020, Vietjet recorded an airport transport revenue of VND1,970 billion (approx. US$84.5 million), a decrease of 54% year-on-year, and a loss of VND1,122 billion (approx. US$48 million). The first half of the year saw the airline’s decline in air transportation at VND2,111 billion (approx. US$90.5 million).
Vietjet has sought partners and implemented financial solutions such as asset transfers and financial investments, which resulted in financial revenue of VND1,174 billion (approx. US$50.4 million) with a post-tax consolidated profit of VND1,063 billion (approx. US$45.6 million) in Q2/2020. A consolidated profit of VND73 billion (approx. US$3.2 million) was recorded in H1/2020. These results were achieved due to the strong financial base, which the company has accumulated over the years.
Vietjet resumed all of its domestic flights in June when Vietnam opened up for internal operations with 300 daily flights. The airline also launched eight new routes to meet rising domestic travel demand, increasing its total domestic flight network to 52 routes with a total of 14,000 flights operated. Its total passenger carriage reached 1.2 million passengers in June, marking a positive recovery for the domestic market.
With cost optimisation advantages following the models of LCCs worldwide, Vietjet has been proactively implementing cost-saving measures with an average cost drop of 55% due to an operation capacity reduction of 30%-35%, and a service cost decrease of around 20%-25%. In May, Vietjet stocked up on fuel reserves when prices were low, leading to a cost reduction of 25% compared to the market price. The carrier was also in talks with suppliers for a reduction of 20% up to 45% of the charge for airport handling, technical activities and other services.
The airline’s total asset is VND48,392 billion (approx. US$2.075 billion) with the owner’s equity being at VND17,339 billion (approx. US$745 million), including treasury shares. Its current liquidity is 1.4 while debt to equity ratio is 0.57, which are among the lowest rates in the global aviation industry. It allows Vietjet to proceed with its long-term financing plan to enhance its internal resources for fighting the current pandemic.
Being active on measures to weather Covid-19 pandemic, Vietjet has implemented many solutions since early 2020, including expanding its cargo transportation business, developing its SkyBoss product and ancillary services, offering “Power Pass”, an unlimited flight pass. The carrier also started self-serve ground operations at Noi Bai International Airport in Hanoi to be more active in activities, reduce costs, increase ancillary revenue, and improve passenger quality services. In particular, Vietjet has also worked on many solutions to increase revenue and optimise operations. It has boosted cargo transport service since April and is the first airline in Vietnam to gain the government’s approval to deploy cargo operations in the passenger cabin (CIPC). At the same time, the company has increased charter services, expanding its self-serve ground service at Noi Bai International Airport to optimise operating costs.
Aside from the effort of the airline itself, the support of Vietnam’s government has reduced the pressure and boosted aviation recovery. Following the Vietnamese airlines’ proposal, the Government and industry authorities are in consideration of aviation support packages, including exemption of taxes, fees, aviation services, environmental tax exemptions for flight fuels, financial assistance, extension of payment term, etc.
Ecojet, the world's first electric, commercial airline, has signed an agreement to purchase 22 ZA2000 hydrogen-electric engines from ZeroAvia, with…
Vertical Aerospace has seen its latest VX4 prototype perform its first tethered piloted flight as it begins the “wheels up”…
As many as 260 firm commercial aircraft orders and £81.5bn worth of deals were struck on the first four days…
The first mission-ready F-16 pilots to graduate from the European F-16 Training Center (EFTC) in Romania were honoured today. This…
The NATO Support and Procurement Agency (NSPA) has awarded Airbus Helicopters a contract to lead a concept study as part…
Turkish Technic, a global maintenance, repair, and overhaul (MRO) company, has recently signed a Component Support Agreement with Citilink, a…
Following its firm order of 20 A330neo aircraft at the 2024 Farnborough International Airshow, Vietjet has entered into significant agreements…
NASA Langley Research Center has awarded a contract to Terma to improve the data management and operational efficiency of its…
With the advanced air mobility (AAM) industry on the verge of take-off, there has been a concerted effort by companies…
Magellan Aerospace Corporation (Magellan) has inked a Memorandum of Understanding (MOU) at the Farnborough Airshow with the Indian firm, Aequs…
ZeroAvia and KLM Royal Dutch Airlines will work towards a demonstration flight using ZeroAvia’s ZA2000 zero-emission, hydrogen-electric engines for large…
Pratt & Whitney has received more than 950 GTF engine orders and commitments since the beginning of the year. Airlines…
Triumph's Thermal Systems Division has been awarded a long-term-program contract to design, manufacture and support the precooler system for the…
Pratt & Whitney and OGMA Indústria Aeronáutica de Portugal , an Embraer company, have announced the induction of the first…
Abra Group has signed a Memorandum of Understanding (MoU) for five A350-900 aircraft, aiming to expand its international long-haul operations…
Saudi Arabia’s low-cost carrier flynas has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and…
Thai Airways International Public Company Limited (THAI) has signed a six-year agreement with GE Aerospace to extend their TrueChoice Service…
AirAsia Aviation Group and AirAsia X, two of Asia’s largest low-cost carrier groups, have strengthened partnerships with SITA, adopting SITA…
AAR, a provider of aviation services to commercial and government operators, MROs, and OEMs, has entered into several long-term distribution…
J&C Aero, an EASA-certified international cabin interior hub, has successfully completed a full cabin modernisation of a Boeing 757-200, equipping…
Hours after it signed a contract with Australian company Wilbur Air, Spanish electric aircraft manufacturer Crisalion Mobility announced that it…
In a significant milestone for the D328eco programme, German OEM Deutsche Aircraft has commenced the construction of the first test…
British cargo airline, One Air, has marked its first year of operations by connecting 28 global airports and transporting over…
Liebherr-Aerospace and AAR have announced the signing of a General Terms Agreement (GTA). Under this agreement, Liebherr will grant licence…
EirTrade Aviation, the global aviation asset management and trading company, has begun disassembling its first B777-300ER in Knock, Ireland. The…
JEKTA Switzerland, the developer of the zero-emissions PHA-ZE 100 amphibious aircraft, has signed an agreement with Seaplane Asia to add…
Embraer announced a significant development for Brazilian air traffic during the Farnborough International Airshow. Atech, an Embraer Group company specialising…
Boeing and Ryanair, Europe’s largest airline group, are set to enhance the efficiency of Ryanair’s primarily 737 fleet by incorporating…
Specialist regional aircraft lessor TrueNoord has secured a new five-year term loan with BayernLB. This agreement strengthens TrueNoord’s relationship with…
LanzaJet, a sustainable fuels technology company, has received a strategic investment from Airbus to help expand LanzaJet’s ethanol-to-sustainable aviation fuel…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.