Vietjet recorded positive signs of recovery after the first quarter thanks to project and finance investment, and the development of other aviation services to compensate for the slump in operations.
According to Q1/2021 business results that Vietjet Aviation Joint Stock Company (HOSE: VJC) announced, its consolidated revenue and profit after tax reached 4,048 billion VND and 123 billion VND respectively.
In the first quarter, the company transferred all of its treasury shares to focus on supporting capital for air transport services through service improvement, cost reduction, and optimization of operating costs per flight hour. As a result, Vietjet’s average operating expenses decreased by 52%, selling and administrative expenses decreased by more than 39% year-on-year.
As one of the first airlines to fully resume the domestic flight network, Vietjet operated more than 21,000 flights and carried nearly 3.6 million passengers with On-Time Performance (OTP) over 90% just within the first three months of 2021. In addition, the airline also opened many new flight routes to cater to the increasing travel demand during the Lunar New Year and the summer holidays with many incentive programs.
In addition to passenger transportation, the company continues to strengthen solutions to increase its ancillary revenue, which accounted for nearly 50% of the total revenue, thanks to diversifying cargo flight services, expanding product types accordingly to the needs and the development of the logistics. Vietjet transported a total of 18,000 tons of goods after the first quarter.
While enhancing operations, Vietjet also strictly complied with safety regulations under the guidance of WHO, International Air Transport Association and Vietnamese Health Ministry to protect both its staff and passengers.
As a result, at the end of January 2021, Vietjet was recognized as the best airline of the year and as the low-cost airline with the best cargo transportation of the year by the magazine Payload Asia. The airline was also named among the top ten best and safest low-cost airlines, reaching a maximum of 7/7 stars for COVID-19 prevention measures applying to global airlines by AirlineRatings, the world’s best one-stop airline safety and product rating review website.