Pioneer Leading the Expansion of International Air Routes
On April 26, 2024, Vietjet Aviation Joint Stock Company (HOSE: VJC) organized its annual General Meeting of Shareholders, where the business plan for 2024 was approved to maintain domestic market share and expand international services through strategic partnerships and joint ventures.
Spearheading the International Network Expansion
The company’s financial results, presented at the annual general meeting, reveal steady business performance despite challenges faced by Vietnam and the world economy, including currency fluctuations and high fuel prices. Vietjet reported robust international network expansion, revenue growth, and financial stability, with key financial indicators increasing significantly.
The airline safely operated 133,000 flights, carrying 25.3 million passengers, including over 7.6 million international travelers, a remarkable 183% increase compared to 2022.
In 2023, Vietjet launched 33 new domestic and international routes, becoming the airline with the most routes between Vietnam and Australia’s five major cities. The airline also expanded its presence in the vast Indian market and launched a direct flight from Hanoi to Jakarta (Indonesia), a route that had not been operated by any airline for decades. Vietjet increased its frequency of flights to Northeast Asia, becoming the Vietnamese airline with the highest frequency of flights to cities in Japan and Korea.
These international routes contributed significantly to the promotion of diplomatic relations, economic development, trade, investment, and tourism between countries.
Vietjet continuously invests in its fleet with the latest generation of modern, safe, and environmentally friendly aircraft. As of December 31, 2023, Vietjet’s fleet comprised 105 aircraft, including wide-body A330s, helping to optimize resources, conserve fuel, and contribute to the airline’s long-term sustainability goals (ESG).
Starting its CO2 reduction journey over a decade ago, Vietjet currently operates a robust fleet that contributes to the company’s success by optimizing resources, saving 15-20% on fuel, protecting the environment, and promoting sustainable development through the research and implementation of green technologies.
ESG remains a strategic priority for the airline in the long term, contributing to Vietjet’s success by optimizing resources, conserving fuel, and reducing CO2 emissions through its new and modern fleet.
Focused on developing human capital, Vietjet Aviation Academy (VJAA) trained over 97,000 students in 6,300 courses in 2023. The academy also commissioned its third flight simulator, maintaining its position as a leading provider of international pilot training in the region.
Outstanding Financial and Operational Performance
The efficient operation of existing routes and the launch of new international services brought Vietjet superior financial results in 2023, with air transport revenue reaching 53.7 trillion VND and consolidated revenue amounting to 58.3 trillion VND.
As of December 31, 2023, Vietjet’s total assets reached over 86.9 trillion VND. Cash and cash equivalents stood at 5,051 billion VND, 2.7 times higher than the same period the previous year, enhancing the company’s financial stability.
Vietjet leads the credit rating category for businesses overseen by the Ministry of Finance. The airline has achieved a VnBBB- credit rating, among the highest in Vietnam.
In 2023, Vietjet contributed approximately 5,200 billion VND in direct and indirect taxes and fees to the government budget.
For the first quarter of 2024, Vietjet safely operated nearly 34,500 flights, carrying over 6.3 million passengers. The airline reported consolidated revenue and profit after tax of 17,792 billion VND and 539 billion VND, respectively. Vietjet paid 1,770 billion VND in taxes during the first quarter of 2024.
As part of its corporate culture of community involvement, Vietjet maintains free flights for underprivileged students, workers, and laborers. The airline also participates in charity programs, providing gifts to underprivileged communities in remote areas, donating to SOS Children’s Villages, and awarding scholarships to students who excel academically and overcome challenges.
These positive business outcomes have been recognized by leading aviation magazine AirlineRatings, which honored Vietjet in 2023 with awards such as Top 20 Safest Low-Cost Airlines in the World, Best Low-Cost Airline Cabin Crew, and Best Ultra Low-Cost Airline in the World.
International Finance, a prestigious financial publication from the UK, recognized Vietjet as the “Best Low-Cost Airline” and “Best Treasury Manager.”
Plan for High Growth in 2024
Building on 2023’s accomplishments, Vietjet continues to connect Vietnam to the world and bring the world to Vietnam. Since the beginning of 2024, under the slogan “Fly Worldwide, Renew Yourself,” Vietjet has announced and launched new international routes, including Phu Quoc – Taipei (Taiwan, China), Ho Chi Minh City – Chengdu and Xi’an (China), Ho Chi Minh City – Vientiane (Laos), and Hanoi – Hiroshima (Japan), Sydney, and Melbourne (Australia).
Furthermore, Vietjet continues to play a vital role in connecting regions, stimulating economic recovery, and promoting development across the country.
Leveraging modern digital technology and a comprehensive aviation service ecosystem, Vietjet constantly introduces innovative products and services while striving to enhance customer experiences to bring joy and satisfaction to every passenger.
Regarding the 2024 plan, the General Meeting approved the air transport revenue target of over 59,000 billion VND and consolidated revenue of over 65,500 billion VND, representing an increase of 10.0% and 12.4% compared to 2023, respectively. The airline plans to safely operate 142,000 flights and transport 27.4 million passengers.
The General Meeting approved the 2024 profit distribution plan, which includes a dividend payment in cash and stock of up to 25%.
The meeting also outlined plans to drive continued growth, adapt to market developments, lead industry trends, and create new opportunities. Vietjet will maintain its strong domestic market share and expand its global network to new destinations in South Asia, Central Asia, Australia, and Europe.
