Vietjet Aviation Joint Stock Company (HOSE: VJC) has delivered strong financial results for the first nine months of 2024, demonstrating stable operations in its domestic market and continued expansion of its international network to meet rising travel demand.
Strong Passenger and Cargo Growth
During the first three quarters of 2024, Vietjet transported over 19.6 million passengers across 104,000 flights, marking year-over-year increases of more than 6% in passengers and 2% in flights. International passenger traffic grew 9.1%, with over 2.54 million passengers served. The airline’s fleet, now at 85 aircraft, maintained an impressive seat utilization rate of 87% and a technical reliability rate of 99.7%.
Cargo performance also saw a remarkable increase, with Vietjet transporting 88,964 tons of cargo—up 73% year-over-year—capturing more than 10% of the Vietnamese airline freight market.
Expanding Route Network
Vietjet continued to grow its global presence in Q3, operating 155 routes, including 43 domestic and 112 international routes. New direct services were launched, such as the Da Nang-Ahmedabad and Xi'an-Ho Chi Minh City routes, alongside increased frequencies on key routes like Ho Chi Minh City-Perth and several destinations in South Korea, Japan, and Hong Kong.
The airline reached a significant milestone in Q3, welcoming its 200 millionth passenger, solidifying its role as a key player in connecting Vietnam with the world.
Financial Performance and Profit Growth
Vietjet reported air transport revenue of VND 51.7 trillion (approx. US$2.03 billion) for the first nine months of 2024, marking a 32% year-over-year growth. Total consolidated revenue reached VND 52.2 trillion (approx. US$2.05 billion), a 19% increase from the previous year. Profitability surged with a remarkable 884% year-over-year increase in after-tax profit from core operations, reaching VND 1.13 trillion (approx. US$44.58 million), and consolidated after-tax profit of VND 1.4 trillion (approx. US$55.16 million), up 564%.
Ancillary and cargo revenues also contributed significantly to the airline’s performance, reaching VND 17.6 trillion (approx. US$693.47 million), a 16% increase from 2023 and accounting for 34% of total air transport revenue.
Fleet Expansion and Strategic Partnerships
As part of its fleet expansion strategy, Vietjet added three new aircraft in October 2024, bringing its total fleet size to 88. In line with its growth plans, Vietjet and Airbus signed an agreement for 20 new-generation A330neo wide-body aircraft, valued at US$7.4 billion. The airline also secured a deal with Rolls-Royce for the supply of 40 Trent 7000 engines and TotalCare services to power its new A330neo fleet. Additionally, Vietjet signed a comprehensive service agreement with Lufthansa Technik to ensure top-tier aircraft maintenance services.
Sustainability and Technological Innovation
Vietjet has prioritized sustainability in its operations, actively pursuing research, development, and the use of sustainable aviation fuel (SAF). The airline has also been expanding its use of advanced aviation technologies to reduce emissions and contribute to its Environmental, Social, and Governance (ESG) goals. At the 2024 Farnborough International Airshow, Vietjet showcased its commitment to these objectives by signing strategic agreements focused on sustainability and innovation in aviation.
Furthermore, the airline continues to innovate its consumer services through its e-commerce platform, enhancing the customer experience with technology-driven solutions.
Outlook for the Remainder of 2024
Vietjet plans to ramp up operations in the final months of 2024 to meet the peak travel season. As part of its ongoing commitment to sustainable growth, the airline will continue to focus on expanding its fleet, increasing operational efficiency, and maintaining high service standards. With a strong financial foundation, a growing network, and a focus on sustainability, Vietjet is well-positioned for continued success in the years ahead.
As of September 30, 2024, Vietjet’s total assets were valued at nearly VND 94 trillion (approx. US$3.7 billion), with a solid liquidity position and a debt-to-equity ratio of 2.25. The airline also paid approximately VND 5.56 trillion (approx. US$219.4 million) in taxes and fees, contributing to economic growth and supporting the broader tourism and trade sectors.
Vietjet's expansion strategy, coupled with its strong financial performance and sustainability efforts, underscores its leadership in the Vietnamese aviation market and its ambition to continue growing as a global airline.