Vietjet Aviation Joint Stock Company (HOSE: VJC) has released its audited financial statements for 2023, showing robust growth over the year.
The audited separate air transport revenue and consolidated revenue were reported at VND53.7 trillion (approx. US$2.16 billion) and VND58.3 trillion (approx. US$2.35 billion) respectively, increasing by 62% and 45% YoY in the order given. Notably, the company recorded a turnaround of pre-tax air transport profit and consolidated profit at VND471 billion (approx. US$18.98 million) and VND606 billion (approx. US$24.42 million) respectively.
Ancillary and cargo revenue amounted to nearly VND21 trillion (approx. US$846.6 million), higher than the compiled financial statements, and increased by more than 60% YoY. It accounted for 39% of the total air transport revenue. As of December 31, 2023, Vietjet's total assets totaled more than VND86.9 trillion (approx. US$3.5 billion). The company's debt-to-equity ratio was at 2, well below the typical global range of between 3 and 5. Vietjet’s liquidity ratio stood at 1.3, which was within the good range of the aviation industry. The cash and cash equivalents balance as of December 31, 2023, was reported at VND5.051 trillion (approx. US$203.62 million), ensuring the airline's financial capacity.
The airline was also among those with the best credit ratings according to guidelines by the Ministry of Finance. It has received the highest credit rating (VnBBB-) among Vietnamese corporations. In 2023, Vietjet paid approximately VND5.2 trillion (approx. US$209.63 million) of direct and indirect taxes and fees.
Leading international expansion
Striving to maintain and grow the domestic network while focusing efforts on expanding international routes, Vietjet safely operated 133,000 flights with 25.3 million passengers onboard in 2023 – a surge of 183% YoY, of whom more than 7.6 million were flying internationally. Vietjet launched 33 new domestic and international routes, bringing the total number of routes to 125, including 80 international and 45 domestic routes. Notable routes included Ho Chi Minh City – Shanghai, Ho Chi Minh City – Vientiane, Hanoi – Siem Reap, Hanoi – Hong Kong, Phu Quoc – Taipei, Phu Quoc – and Ho Chi Minh City/ Hanoi – Jakarta, etc.
Vietjet is also now the largest operator of flights connecting Vietnam to India and Australia, helping promote trade and tourism with the two countries of high potential. Since early 2024, the airline has further opened a direct route between Hanoi and Sydney, lifting the total number of Vietnam-Australia routes to seven. It has also expanded its network to India, currently operating 28 round-trip flights per week across 4 major cities – Mumbai, New Delhi, Ahmedabad, and Kochi. It has also commenced flights from Hanoi to Hiroshima (Japan) and Ho Chi Minh City to Chengdu (China), bringing about opportunities to strengthen bilateral tourism and trade. Domestically, Vietjet has inaugurated the new route Hanoi – Dien Bien to take travelers to the historic destination of Dien Bien Phu.
The airline's average load factor rate reached 87%, and the technical reliability rate reached 99.72%.
Developing a safe, modern, eco-friendly fleet
Sustainable development (ESG), which will continue to be the airline’s long-term strategic goal, is vital to the airline’s success as it helps to optimize resources, save fuel, and reduce CO2 emissions with a new and modern fleet of aircraft. To meet operational demands, Vietjet continued to invest in a modern, safe, and eco-friendly fleet. As of December 31, 2023, Vietjet's fleet consisted of 105 aircraft, including the wide-body A330s. Having embarked on its journey to reduce carbon emissions over 10 years ago, by 2023, Vietjet's fleet has grown significantly, contributing significantly to the company's success by optimizing resources, saving up to 15-20% of fuel, and particularly focusing on environmental protection, sustainable development, and research on green technologies.
Regarding safety as the utmost priority, the airline organized numerous conferences, training courses, and simulations on safety and security last year, such as the Quality and Safety Conference, ISAGO (International Standard for Ground Operations) safety training, and emergency response simulations to proactively ensure security and absolute safety for flight operations. Vietjet was again honored as one of the safest low-cost airlines in the world by AirlineRatings.
Vietjet's ground services center has operated efficiently, enhancing the quality of ground services while reducing operational costs at the airport. In addition to ground handling services, Vietjet has also taken a proactive approach to aircraft maintenance work. In 2023, it launched an Aircraft Maintenance Center of International standards in cooperation with Lao Airlines in Vientiane. Realizing its strategy and vision to develop and build a workforce of international standards, the Vietjet Aviation Academy (VJAA) has become a training partner of the International Air Transport Association (IATA). In 2023, VJAA trained over 97,000 students through 6,300 courses, actively providing training for pilots and aircraft maintenance staff (CRS). The academy also installed its third flight simulator, becoming a top-notch pilot training center in the region.
Vietjet achieved a significant milestone for comprehensive development last year with an ever-expanding international network of medium-haul flights. The company is ready to meet the demand for domestic travel while continuing plans to further grow the international network.