Vietjet Continues to Prosper Despite Increasing Air Competition in Vietnam

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Vietjet enjoyed a 22 per cent growth of air transport in the last six months, increasing its year-on-year profit by 16 per cent.

According to Vietjet business result report, the airline achieved excellent business results in the first half of the year. Air transport’s revenue reached US$ 872 million (VND 20,148 billion), an increase of 22% over the same period of 2018. Profit before tax reached US$67.6 million (VND1,563 billion), an increase of 16% compared to the same period last year. Profit before tax was close to US$104 million (VND2.4 trillion) up by 11% year-on-year.

In the first half of 2019, Vietjet operated 68,821 flights, a market share of 45% of all the flights operated by Vietnamese air carriers. Vietjet transported 13.5 million passengers, maintaining its leader position on domestic routes with a 44% market share. Vietnam Airlines was the second largest carrier with a market share of 34%.

The number of passengers on Vietjet international routes grew by 35% translating into nearly 4 million travellers. Despite this small passenger number compared to domestic figures, revenues from of international routes generated 54% of all Vietjet’s revenues.

During the first half of 2019, Vietjet opened nine new international routes to Japan, Hong Kong, Indonesia, China and three new domestic routes. The newly-opened routes helped pushing Vietjet’s total number of routes to 120 of which 78 are international and 42 are domestic ones. Vietjet network now covers a number of destinations in Vietnam, Japan, Hong Kong, Singapore, South Korea, Taiwan, Thailand, Myanmar, Malaysia, Cambodia and China.

During the same period, Vietjet’s revenue passenger kilometers (RPK) reached 16.3 billion, increasing 22 % over the same period of 2018. The airline’s load factor stood on average at 88%, technical reliability was 99.64% and on-time-performance (OTP) reached 81.5 %.  Vietjet expects to maintain positive growth rates in the next 3 years and will continue to announce new international and domestic routes during the second half of 2019. The airline also considers opportunities to invest in infrastructure, terminals, technical services, ground services and training as the Vietnamese air transport market continues its tremendous growth.