Vietnam's Vietjet Airline Reports Robust Growth in First Quarter of 2024

Vietjet Aviation Joint Stock Company has begun 2024 with robust financial growth, showing increased profitability and strong passenger numbers in the first quarter of the year. The results signal positive momentum as the airline continues its international expansion and overcomes industry headwinds.

Vietjet posted consolidated revenue of VND 17,792 billion ($698 million) in the first quarter, marking a 38% increase from the same period in 2023. Notably, after tax profit jumped by 212% to VND 539 billion ($21 million). Growth was primarily due to strong air transport revenue, which soared to VND 17,765 billion ($697 million).

The airline's expansion strategy proved successful as well. During the first three months of 2024, Vietjet operated almost 34,500 flights carrying over 6.3 million passengers. The carrier maintained impressive operational efficiency, with an average seat utilization ratio of 87% and a technical reliability rating of 99.6%.

A critical factor in Vietjet's growth was its rapid international expansion. Passenger transport on international routes grew by over 53% in the number of flights and 61% in passengers compared to the first quarter of 2023.

In the first few months of the year, Vietjet added 15 new domestic and international routes, bringing its total network to 140 routes. New routes to destinations in mainland China, Laos, Australia, Japan and Taiwan proved particularly popular.

Despite industry-wide challenges, particularly aircraft shortages, Vietjet’s robust results suggest a strong recovery from pandemic-era disruptions. The airline has proven resilient and capable of overcoming obstacles, signaling a positive outlook for the rest of 2024.

Vietjet's positive outlook is supported by its healthy financial position. As of March 31st, total assets grew to VND 85,828 trillion ($3.36 billion), while the airline's debt-to-equity and liquidity ratios remained at safe levels.

Beyond financial success, Vietjet has also integrated Environment, Social and Governance (ESG) initiatives into its operations. The airline is prioritizing fuel efficiency with a modern fleet and actively working towards its “Net Zero” emissions goal by 2050.

The company has set ambitious goals for the rest of 2024, aiming to operate 142,000 flights and transport 27.4 million passengers, reflecting a continued focus on expanding its international network.