Vietjet announces its audited financial statement for 2019

posted on 15th June 2020 by Eddie Saunders
Vietjet announces its audited financial statement for 2019

Vietjet Aviation Joint Stock Company (HOSE code: VJC) has announced its financial statement for 2019, audited by KPMG with positive figures, reflecting strong growth in its core business of air transportation. In 2019, the airline’s flight network increased by 24%, maintaining its leading position in Vietnam’s domestic market with total number of transported passengers reaching 25 million, an increase of 28% year on year.

The group audited business results of 2019 shows its total revenue of VND41,252 billion and VND3,868 billion in profit before tax, increasing by 22% and 27% respectively compared to 2018.

The airline received seven aircraft in 2019 while the number for 2018 was 16 aircraft. Consequently, the audited revenue from aircraft sales & leaseback activity stood at VND9,350 billion. As a result, Vietjet’s consolidated pre-tax revenue and profit in 2019 were at VND50,602 billion and VND4,569 billion respectively.
According to the audited financial report, as of December 31, 2019, Vietjet operated 78 aircraft with an average age of 2.75 years. Its load factor stayed at 87% with technical reliability rate at 99.64%, which place it  among the top airlines in the Asia Pacific region. Vietjet has also been awarded the highest ranking for aviation safety with 7-stars from AirlineRatings.com.

According to Vietjet’s 2019 audited consolidated financial report, the airline’s total asset was VND48,859 billion with the owner’s equity being at VND17,249 billion, including VND2,347 billion of treasury shares, an increase of 25% and 22.8% respectively against those in 2018. Its current liquidity was 1.3 while its debt to equity ratio was 0.79, a healthy rate in aviation industry financing. Vietjet’s EBITDAR (earnings before interest, taxes, depreciation, amortization and rent cost) margin was 30%, being ranked one of the top airlines in the region and globally. The Company’s cash balance was at VND6,073 billion, inclusive of short-term financial investment. The deposit to manufacturers reached USD369 million.

The carrier’s growing business also contributed to its growth in ancillary revenue, including check-in baggage fees and extra service fees, cargo transportation, inflight services (food, beverages & souvenirs) and advertisements. In 2019, Vietjet’s ancillary revenue was VND11,305 billion, up by 35.6% compared to 2018. The portion of ancillary revenue in the airline’s total air transportation revenue increased from 25.3% in 2018 to 30.4% in 2019.

Active in measures to fight the COVID-19 pandemic, Vietjet has implemented many solutions from early 2020 to now, including expanding the cargo transportation business, developing SkyBoss product and ancillary services, offering “Power Pass” flight pass, and more. In addition, Vietjet started self-serving ground operations at Noi Bai International Airport in Hanoi with permission of the Civil Aviation Administration of Vietnam (CAAV). The self-service will help Vietjet be more active, reduce costs, increase ancillary revenues, and, especially, improve passenger quality services at the airport.

In 2019, Vietjet Aviation Academy continued to contribute to the airline’s sustainable development plan in order to not only meet the growing demand for the airline itself but also serve the need of domestic and international aviation. Certified by EASA (European Union Aviation Safety Agency), the Academy has carried out 1,327 training courses for pilot/cabin crew/technicians, and others, amounting to 70,523 trainees in 2019. E-learning technology for online research and training continued to be applied and promoted, with 544 courses provided to 19,936 trainees throughout the year, thereby proving its effectiveness during the COVID-19 pandemic.

Vietjet and Airbus signed an agreement to add two new aircraft Simulators (SIM) in 2020 and 2021, significantly enhancing capacity for training at Vietjet Aviation Academy. The equipment will not only serve the pilot training sessions but other training courses in the process of qualification and evaluation of cadet pilots as well as improving the training quality of Vietjet’s flight instructors. The installation of comprehensive equipment for emergency training and basic training for flight crews, including passenger cabin simulation equipment, emergency training, Olympic standard wave pool, and others, at the Academy have also been completed. This makes the academy one of the region’s leading modern-scale specialised training institutions. Last April, Vietjet also kicked off the Application Research Zone project for the Aviation Technical training at the Academy.
Amid the COVID-19 pandemic, Vietjet is providing a variety of air cargo transportation services to not only serve domestic and international demand but help bring the airline a new and stable source of revenue.

The Government relief activities are expected to reduce the pressure and further support the recovery of the aviation industry by offering exemption/reduction in taxes and fees for aviation services, reduction in environmental tax for flight fuels and financial aid, and others. Last year, the total corporate income tax paid by Vietjet was VND9,023 billion, making it one of the largest taxpayers in Vietnam.
Currently, CAAV has permitted domestic flight operations and is preparing to resume international routes. As soon as the pandemic is controlled, the airlines with good internal resources and cost management like Vietjet together with its solid financial resources accumulated in 2019 and previous years, is expected to recover quickly and rebound post pandemic. In so doing, it will act as a driving force restoring economic growth and increasing investment.