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.
In what seems to be a continuation of Vietnam’s Defence Minister General Phan Van Giang's visit to South Korea in…
GD Helicopter Finance (GDHF), a Dublin-based helicopter leasing and finance company, has secured a contract with Airbus Helicopters and GDAT,…
Indian Low-Cost Carrier (LCC) IndiGo has announced a firm order for 30 Airbus A350-900 aircraft in what is its first…
Racer demonstrator, developed by Airbus Helicopters as part of the European Research Clean Sky 2 initiative, has completed its inaugural…
Lockheed Martin Australia has secured an AUD$500 million contract with the Australian Department of Defence to develop the country’s future…
Artemis Aerospace has announced the addition of a hub in Singapore following the launch of two similar sites in the…
ZeroAvia announced plans to offer key components from its hydrogen-electric engines to fellow innovators in the clean aviation industry on…
Challenge Group has announced the launch of Challenge Technic's specialised A-CHECK line at its hangar facility in Hannover on Wednesday…
Korean Air, alongside Hyundai Motor Company, Korea Telecom (KT), Incheon International Airport Corporation (IIAC), and Hyundai Engineering & Construction, has…
Mayman Aerospace is set to unveil a full-scale model of its high-speed Air Utility Vehicle (AUV), Razor, during SOF Week…
TEKEVER, a provider of unmanned aerial systems (UAS) in Europe, introduced its newest drone the ARX in San Diego, U.S.…
Viasat and uAvionix have teamed up to enhance global communication services for Uncrewed Aerial Vehicles (UAVs), with uAvionix joining Viasat’s…
Korean Air and WestJet have extended their codeshare agreement to provide additional transpacific travel options for passengers on Monday (Apr.…
China Eastern Airlines has reached an agreement with Amadeus concerning international NDC distribution, marking a significant development for both parties.…
Singaporean officials have launched an Invincible-class submarine for the Republic of Singapore Navy (RSN) at thyssenKrupp Marine Systems (tKMS) shipyard…
Ten died following a midair collision between an AW139 helicopter and a Fennec helicopter belonging to the Royal Malaysian Navy…
Integrated Surveillance and Defense (ISD) has been awarded a contract by the U.S. Naval Air Warfare Center Aircraft Division (NAWCAD),…
ST Engineering AirX (AirX), a joint venture between ST Engineering and Peluca (formerly known as Wigetworks), have announced a strategic…
WestJet Cargo is strengthening its flights between Calgary and Paris Charles de Gaulle (CDG). The route will operate 5-7 times…
Embraer delivered 25 jets in 1Q24, an increase of 67% compared to the 15 aircraft delivered in 1Q23. Executive Aviation…
Harbour Air, North America's largest seaplane airline, has signed a Letter of Intent (LOI) to purchase 50 magni650 electric engines,…
Emirates President Sir Tim Clark has apologised to customers for the disruptions caused by the severe weather that battered Dubai…
The Indonesian Navy (TNI Angkatan Laut - TNI AL) aims to enhance its operational capabilities between 2025 and 2044 with…
The Philippine Armed Forces (PAF) took delivery of the first India-made BrahMos land-based anti-ship missile system at Clark Air Base…
The UK Ministry of Defence (MoD) ordered six Airbus H145 helicopters as part of its efforts to update its rotary…
The Brazilian aerospace company, Embraer, signed a Memorandum of Understanding (MoU) with AICAT (Austrian Industrial Cooperation & Aviation Technology) to…
Qatar’s Hamad International Airport (DOH) announced that it has reclaimed the title of the "World’s Best Airport" at the prestigious…
Israel Aerospace Industries (IAI) joined the Sharp Technics K (STK) and Incheon International Airport Corporation for a ceremony heralding the…
Curtiss-Wright Defense Solutions division has forged a strategic alliance and reseller agreement with Rancher Government Solutions (RGS), a provider of…
Saudia, the national airline of Saudi Arabia, has experienced a significant surge in brand value, as indicated by the latest…
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.