Vietjet Aviation Joint Stock Company (HoSE: VJC) recently concluded its 2024 General Meeting of Shareholders (GMS), where it approved the annual business plan for 2024. The airline is poised to maintain its stronghold in the domestic market and further expand its international flight network. Vietjet has also reported remarkable business results in Q1/2024, paving the way for a successful year ahead.
High growth targets for 2024
During the GMS, Vietjet outlined its aspirations for the year, targeting air transport revenue and consolidated revenue to exceed VND59 trillion (approx. SGD3.17 billion) and VND65.5 trillion (approx. SGD3.52 billion) respectively. These objectives represent a 10% and 12.4% YoY growth, with plans to safely operate 142,000 flights accommodating more than 27.4 million passengers onboard.
Vietjet’s Board of Directors also endorsed the 2024 profit distribution plan, proposing dividends and advanced dividends to be paid in cash and stock at a maximum ratio of 25%.
Expanding horizon
With a leading market share in the region, Vietjet aims to fortify its presence in the domestic market while strongly expanding its global footprint. New destinations in South Asia, Central Asia, Australia, and Europe are on the radar, building upon existing routes such as Singapore to Ho Chi Minh City, Hanoi, and Da Nang, and journeys to destinations such as Shanghai, Vientiane, Australia, Busan, Siem Reap, Hong Kong, Taipei, Jakarta, and more.
Q1/2024: outstanding performance, a strong boost for the entire year
In Q1/2024, Vietjet saw substantial growth in air transport revenue, recording VND17.76 trillion (approx. SGD953 million), and after-tax profit at VND520 billion (approx. SGD27.9 million), marking a 38% and 209% YoY increase, respectively. The airline’s consolidated revenue and after tax profit were VND17.79 trillion (approx. SGD955 million) and VND539 billion (approx. SGD28.9 million) growing by 38% and 212% YoY, respectively.
During the first three months of 2024, Vietjet safely operated nearly 34,500 flights, serving over 6.3 million passengers, with an average load factor rate reached 87% and a remarkable technical reliability rate of 99.6%.
Expanding Internationally
Vietjet’s international passenger transport in Q1/2024 surged by over 53% and 61% YoY in terms of numbers of flights and passengers, respectively. The airline has launched 15 new international and domestic routes over three months, lifting its total operating routes to 140. Those among the latest international routes being launched include Phu Quoc – Taipei, Ho Chi Minh City – Chengdu/Xi’an, in addition to Hanoi to Hiroshima and Sydney/Melbourne.
As of 31 March 2024, Vietjet’s total assets surpassed VND85.82 trillion (approx. SGD4.6 billion), maintaining a healthy debt-to-equity ratio of 1.9 and a liquidity ratio of 1.3, both well within the aviation industry standards.
Beyond connecting Vietnam to the world through its flight network, Vietjet is actively engaged in international research and technology investment projects, solidifying its position on the global stage.