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.
The renewed threat of shoulder launched missiles in the world are resulting in contracts for protection systems. Inteligence sources say…
The use of the combat-proven Rafael Spyder air defence system in the ongoing war in Israel has created interest in…
The delivery of Elbit Systems PULS artillery systems and the company's Hermes -900 UAV to Serbia is expected to begin…
Indonesian private defence firm PT Sentra Surya Ekajaya (PT SSE) has introduced a new version of its P2 Tiger 4×4…
Schiebel has been awarded a new multi-year contract by the European Maritime Safety Agency (EMSA) to provide services using the…
BlackSky Technology Inc. has shipped its first Gen-3 satellite to launch provider Rocket Lab. The satellite is scheduled to be…
SITA and Cathay Pacific have entered a new agreement aimed at significantly boosting network bandwidth at Cathay Pacific’s airports. The…
Lockheed Martin has been awarded a $270 million contract by the U.S. Air Force to integrate next-generation infrared defensive sensors…
Malaysia Airlines, in collaboration with Mercedes-Benz Malaysia (MBM), has launched a Private Terminal Transfer Service aimed at providing seamless and…
Fly Jaya, a new entrant in Indonesia’s aviation industry operated by PT Surya Mataram Nusantara, is set to launch domestic…
The first Austrian Airlines Boeing 777-200ER equipped with AeroSHARK surface technology has successfully completed its maiden flight. The long-haul aircraft…
Vietnam and South Korea are reportedly finalising an agreement for the acquisition of 20 K-9 Thunder self-propelled howitzers (SPH) for…
The Royal Thai Air Force (RTAF) is anticipating the final delivery of three AT-6TH Wolverine light attack aircraft by April…
Ukraine's largest airline, SkyUp Airlines, has successfully transitioned to IBS Software's iFly Res Passenger Services System (PSS) to support the…
Experia Events has announced the confirmed exhibitors for the inaugural Business Aviation Asia Forum and Expo (BAAFEx), which will take…
Aonic, a Malaysian drone service provider and manufacturer, has been awarded the Unmanned Aerial Work Certificate (UAWC) by the Civil…
Eve Air Mobility (Eve) has partnered with JetSetGo, a private aircraft charter and fractional ownership company based in New Delhi,…
L3Harris Technologies has received a contract from BAE Systems Maritime Australia for the Integrated Platform Management System (IPMS) on the…
In a response to numerous instances of Global Positioning System (GPS) denial in the war that broke out on Oct.…
Airbus Defence and Space, in collaboration with HENSOLDT, is upgrading the German Airborne Weapon Systems Electronic Warfare Centre with the…
Qantas Airways Limited has officially become a member of the Association of Asia Pacific Airlines (AAPA), as announced by the…
Indra Group’s Board of Directors has appointed Ángel Escribano Ruiz as its new Executive Chairman. This decision was made during…
The first Airbus A400M aircraft for the Indonesian Air Force (TNI-AU) has entered the Final Assembly Line in Seville, Spain.…
Italian airline ITA Airways is now a member of the Lufthansa Group and will be the Group's fifth network airline.…
Revenue Passenger Kilometres (RPKs) are predicted to increase by 25.6% between 2025 and 2030,according to data recently revealed by IBA,…
Indonesian state-owned airport operator PT Angkasa Pura Indonesia, operating under the brand InJourney Airports, reported a notable rise in passenger…
The Department of National Defense (DND) of the Philippines has confirmed plans to acquire 12 additional FA-50 Block 20 Fighting…
Airbus Helicopters has delivered two H225M helicopters to the French Armament General Directorate (DGA), marking the first of eight helicopters…
Curtiss-Wright has unveiled the PacStar 452 server, designed to enhance data storage capabilities in tactical edge applications. This new server…
CAE has inaugurated its first Air Traffic Services (ATS) Training Centre, on its campus in Montreal, Canada. As the largest…
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
2025 GBP all rights reserved.