On April 26, 2024, Vietjet Aviation Joint Stock Company (HOSE: VJC) held its 2024 Annual General Meeting of Shareholders virtually.
The General Meeting of Shareholders heard reports from Vietjet Vice Chairman Nguyen Thanh Ha and Vietjet General Director Dinh Viet Phuong on the Board of Directors’ and Executive Board’s operating results for 2023, which were positive and showed strong growth amidst ongoing market volatility.
Accordingly, in 2023, Vietjet recorded strong business results compared to 2022.
Total revenue from air transport reached VND 53,700 billion, while consolidated revenue was VND 58,300 billion, representing increases of 62% and 45%, respectively, compared to the same period in 2022. Notably, profit from air transport, before and after tax, returned to positive territory, reaching VND 471 billion and VND 606 billion, respectively.
Revenue from ancillary services and cargo transportation reached nearly VND 21 trillion, which was higher than the independently reported results and over 60% higher than in 2022, contributing 39% to total air transportation revenue.
As of December 31, 2023, Vietjet’s total assets exceeded VND 86.9 trillion. The company’s debt-to-equity ratio was only 2x, compared to the typical global benchmark of 3x-5x. The liquidity ratio of 1.3x was sound for the aviation industry. The cash and cash equivalents balance at December 31, 2023 was VND 5,051 billion, more than 2.7 times higher than the same period last year, ensuring the airline’s financial stability.
Vietjet also maintains a high credit rating, according to the Ministry of Finance’s guidelines. The company achieved a VnBBB- credit rating, which is among the highest for Vietnamese enterprises.
In 2023, Vietjet contributed approximately VND 5,200 billion to the state budget in direct and indirect taxes and fees.
Continuing to maintain and develop its domestic flight network while focusing on expanding international flights, Vietjet operated 133,000 safe flights in 2023, carrying 25.3 million passengers, including over 7.6 million international passengers, an 183% increase compared to 2022. Vietjet launched 33 new international and domestic routes, bringing the total number of routes to 125, consisting of 80 international routes and 45 domestic routes.
Vietjet CEO Dinh Viet Phuong speaks at the meeting
In 2024, under the theme “Flying Around the World – Reinventing Ourselves,” Vietjet will continue on its journey of reaching new heights, aiming to become a multinational aviation group with an extensive network across the region and internationally, and a brand beloved and trusted by customers. The company’s Executive Board reported the following specific goals and strategies to the meeting:
– Expanding the international flight network. Develop international routes steadily and effectively.
– Invest heavily in training and education, with a focus on developing human resources to share, expand, and advance knowledge, skills, and experience, thereby positively contributing to the rapid and sustainable development of the airline.
– Enhance Business services, paying particular attention to ground services and passenger cabins.
– Develop and implement a global research and integration plan for a CO2 emission reduction program, the use of clean fuels, and ESG products, while promoting environmental friendliness and initiating green flight journeys.
– Continue to invest in platforms, solutions, and advanced technologies, while promoting and fostering scientific and technological innovation, developing a shared database, digitizing data, and automating certain simple processes by adopting the latest global technologies and leveraging AI to serve the company, thereby optimizing costs and providing better customer care.
– Develop ancillary services, technical capabilities, ground operations, and cargo transportation. Expand service and supply companies to generate high-value revenue and profit.
– Expand the fleet of wide-body, new, and modern aircraft.
Vietjet plans to transport 27.4 million passengers in 2024, with air transportation revenue increasing by 10% to VND 59,000 billion, while consolidated revenue is projected to increase by 12.4% to VND 65,566 billion. The company set a target of VND 1,081 billion for consolidated profit before tax in 2024, and VND 831 billion for the parent company’s profit before tax in 2024, representing increases of 78.38% and 76.4%, respectively, compared to the same period in 2023.
