Vietjet makes $3 million in profits despite Covid
Vietjet Aviation has reported 4.43 trillion dong or US$192 million in consolidated revenue in the fourth quarter of last year and a total of 18.21 trillion dong or $790 million in revenue for the entire 2020.
In 2020, Vietjet recorded a consolidated after-tax profit of 70 billion dong or $3 million, making it one of the few airlines in the world to turn a profit without having to lay off staff.
The statement said revenue from supplementary ventures accounted for 50 per cent of the airline’s total revenue.
Vietjet’s total assets reached 47.04 trillion dong or about $2 billion, while its owner equity stood at 17.33 trillion dong or about $746.2 million, including treasury shares. Its debt-to-equity ratio stayed at as low as 0.66 while the liquidity ratio remained at 1.2, which is good given the current situation of the aviation industry.
Vietjet last year configured some of its passenger aircraft for freight transportation purposes while applying new operational methods to strengthen its cargo service capacity. The airline was the first airline in Vietnam to be allowed to deploy cargo operations in the passenger cabin (CIPC). It has since delivered more than 60,000 tonnes of cargo internationally, seeing its freight revenue leaping by 75 per cent in the fourth quarter of last year.
Vietjet also won “Belly Carrier of the Year” and “Low-cost Carrier of the Year” awards from cargo magazine, Payload Asia.
In 2020, Vietjet also launched the Vietjet Ground Services Center (VJGS) at Hanoi’s Noi Bai International Airport, which helped the airline better manage its operating costs.
The airline has also introduced a series of new products and services, like the unlimited Power Pass, the upgraded Power Pass Skyboss or SkyBoss and Deluxe classes with better flying privileges.
Vietjet has also managed to drastically cut its operating expenses by optimizing fleet operations for 10 per cent less, negotiating 20 to 25 per cent discounts from suppliers and bringing down daily operating costs by at least 10 per cent. The airline also successfully hedged jet fuel in May 2020 and saved 25 per cent in fuel costs.
Vietjet has so far resumed its entire domestic network of more than 47 routes. The airline is also getting government support in the form of tax benefits, tax-payment extensions and reduction in landing/take-off fees, ground service fees and air-control fees.
