KUALA LUMPUR, August 14 – Vietjet continues to achieve new milestones as it rapidly expands its international network, connecting Vietnam and other Southeast Asian nations to more than 100 global destinations. This network expansion has fueled a surge in global trade, tourism, investment, and cultural exchange among nations worldwide, earning the airline the title of ‘air ambassador’. In the first half of 2023, Vietjet experienced a significant increase of 3.5 million international passengers, accounting for over 50% of the total 6.9 million international passengers traveling to and from Vietnam.
This growth includes travelers from Malaysia to Vietnam via the daily Kuala Lumpur – Ho Chi Minh City route, providing passengers with increased flexibility to plan their visits to Vietnam for leisure, business, or en-route to other destinations. This upsurge in passengers is attributed to the introduction of 11 new international routes to destinations such as Australia, Indonesia, and India. This expansion extended Vietjet’s flight network to 120 routes (75 international and 45 domestic) in the second quarter of 2023.
These connections have transformed air travel into a convenient, cost-effective mode of transportation for individuals and businesses between Vietnam, Southeast Asia, and major global markets like Australia, India, Kazakhstan, and Northeast Asia. Driven by strong demand, Vietjet has significantly expanded its presence in India, a country with a population of over 1.4 billion. The airline now operates a total of 7 routes connecting Hanoi and Ho Chi Minh City to major Indian cities including Mumbai, New Delhi, Ahmedabad, and Kochi.
Vietjet’s entry into the Indian market has resulted in over 300,000 passengers traveling between Vietnam and India in the first half of 2023, an increase of more than fivefold compared to the same period last year. Additionally, Vietjet has introduced three direct routes connecting Ho Chi Minh City to Australia’s largest cities – Sydney, Melbourne, and Brisbane – since mid-April. Prior to 2023, the Vietnam-Australia route saw an average of about 500,000 international passengers per year. With the new direct flights to Australia, the weekly passenger count has doubled.
Vietjet anticipates exceeding one million passengers on this route by the end of 2023. Furthermore, a fourth route connecting Ho Chi Minh City and Perth is scheduled to launch in November. In the Northeast Asian market, Vietjet operates the most extensive network between Vietnam/Southeast Asia and South Korea (14 routes), Taiwan (8 routes), and Japan (7 routes), with over 50 destinations in mainland China. This solidifies Vietjet’s position as a multinational airline and a true air ambassador within the global aviation industry.
Vietjet’s extensive international routes, coupled with competitive fares and high-quality services, have fostered cultural connections, bridging the geographical divide between Vietnam and Asia-Pacific nations, and bringing communities closer. The airline has also played a pivotal role in promoting tourism and strengthening bilateral investment and trade, contributing to the economic growth and recovery of countries. Vietjet, embracing a strategy of continuous innovation and premium service offerings, introduced its Business Class in the first half of 2023, providing numerous privileges for passengers.
The airline’s SkyJoy loyalty program has already attracted more than 8 million members. Vietjet has also incorporated the modern and environmentally-friendly A330 aircraft for flights to Australia, India, Kazakhstan, Japan, and South Korea. In an expression of gratitude for ongoing support, Vietjet actively offers free flights and discounted tickets to customers in the region, upholding its philosophy of making flying accessible in a world that increasingly brings economies and cultures closer.
In terms of financial performance, during the first six months of 2023, Vietjet reported consolidated revenue of VND29,770 billion (approx. MYR5.72 billion), representing an impressive 87% YoY increase and reaching 120% of its H1 target. Ancillary revenue, accounting for 40% of total revenue, also experienced a two-fold YoY increase, reaching VND9,000 billion (approx. MYR1.73 billion). The airline recorded a consolidated after-tax profit of VND387 billion (approx. MYR74.4 million). With over 65,900 flights safely operated, transporting more than 12.1 million passengers, Vietjet boasts a 30% YoY increase in passenger numbers, solidifying its position as the market leader in both domestic and international travel.
Vietjet’s fleet consists of 103 aircraft, including 7 wide-body models. The airline has made substantial orders with Airbus and Boeing, bolstering operational efficiency and financial performance. As part of its commitment to sustainability, Vietjet focuses on green aviation development, prioritizing fuel-efficient flights to reduce CO2 emissions. The airline also utilizes eco-friendly materials such as meal trays made from local bamboo and areca palm leaves. Furthermore, Vietjet is actively integrating technology and digital processes to streamline operations, enhance efficiency, and minimize environmental impact.
By June 30, 2023, Vietjet’s total assets had surpassed VND71,500 billion (approx. MYR13.73 billion), while the debt/equity ratio and liquidity ratio stood at 1.2 and 1.5 respectively, well within the aviation industry’s favorable parameters. Vietjet’s solid financial standing has earned it a BB+ credit rating with a Stable outlook (VnBB+) from Saigon Ratings. This recognition is attributed to the airline’s robust capital structure, low debt ratio, resourceful liquidity, and diversified business platforms that have helped maintain shareholder capital following the challenges posed by the Covid-19 pandemic.
