Vietjet soars to become ‘air ambassador’ with its growing international network expansions connecting Southeast Asia to the world

Vietjet has constantly been reaching new heights thanks to its fast-growing international network expansion plans that has since connected Vietnam and other Southeast Asian countries to over 100 destinations worldwide. This connection has fueled a boom in global trade, tourism, investment and cultural exchange between countries globally and has earned the multinational airline company the reputation of ‘air ambassador’.

Vietjet an aviation leader in the international market
In the first half of 2023 alone, Vietjet reported a remarkable increase of 3.5 million international passengers, accounting for more than 50% of the total 6.9 million international passengers flying to and from Vietnam.

This includes travelers flying into Vietnam from Malaysia via the Kuala Lumpur – Ho Chi Minh City direct route that operates on a daily basis, giving passengers more flexibility to plan their travels to Vietnam for either leisure, business or pitstop to another country.

This influx of passengers is also thanks to the 11 new international routes - to Australia, Indonesia, and India, that expanded Vietjet’s flight network to 120 routes (of which 75 international and 45 domestic) in the second quarter of 2023. This has made air travel the most convenient, cost-effective means of transport for individuals and businesses between Vietnam, the Southeast Asian region and major international markets such as Australia, India, Kazakhstan, Northeast Asia, and beyond.

Due to high demand, Vietjet has aggressively expanded its network to India, which is home to over 1.4 billion people. There are now a total of 7 routes connecting Hanoi and Ho Chi Minh City to the four major cities in India - Mumbai, New Delhi, Ahmedabad, and Kochi. Vietjet's entry into the market has increased the total number of passengers traveling between Vietnam and India in the first six months of 2023 to over 300,000, over five times higher than 70,000 passengers recorded in the same period last year.

Additionally, Vietjet has also opened three direct routes since mid-April connecting Ho Chi Minh City to three of Australia’s largest cities - Sydney, Melbourne, and Brisbane. According to the airline’s data, the number of international passengers on the Vietnam-Australia route averaged about 500,000 a year prior to 2023.

However, since the launch of new direct flights to Australia in April, the number of weekly passengers doubled, in line with Vietjet’s projection of over one million passengers by the end of 2023. Meanwhile, the fourth route to Australia, connecting Ho Chi Minh City with Perth, is all set and ready to be launched this November.

In the Northeast Asian market, Vietjet has been operating the largest network between Vietnam/Southeast Asia and South Korea (14 routes), Taiwan (8 routes), Japan (7 routes) for years, with expansions to over 50 destinations in mainland China. This further solidifies Vietjet's position as a multinational airline and an air ambassador in the global aviation industry.

Vietjet's many international routes coupled with reasonable fares and high-quality services, have contributed to connecting cultures, bridging the geographical distance between Vietnam and Asian-Pacific countries and bringing people in the region closer. They have also successfully promoted tourism and strengthened bilateral investment and trade, further facilitating the economic recovery and development of the countries.

Embracing the strategy of back-to-back innovation and constantly introducing premium products and services, Vietjet has launched its Business Class in the first half of 2023 with countless privileges for passengers. Also, Vietjet’s SkyJoy loyalty program has attracted over 8 million members to date. The airline has also put into operation the modern and environmental-friendly A330 aircraft for flights to Australia, India, Kazakhstan, Japan, and South Korea.

Giving back to the community as an appreciation towards their continuous support, Vietjet has been actively offering free flights and discounted tickets for all their customers in the region, living up to the airline’s philosophy that everyone can fly in a world where economies and cultures are brought closer than ever.

Revenue and H1 target exceed expectations
In the first 6 months of 2023, Vietjet's consolidated revenue was VND29,770 billion (approx. MYR5.72 billion), soaring by 87% YoY and reaching 120% of the H1 target. Ancillary revenue maintained a high growth rate, reaching VND9,000 billion (approx. MYR1.73 billion) – a two-fold increase YoY and accounting for 40% of the total revenue. Consolidated after-tax profit was recorded at VND387 billion (approx. MYR74.4 million).

Vietjet has safely operated 65,900 flights, transporting over 12.1 million passengers, marking a YoY increase of 30%. This puts the airline as the market leader in terms of passenger numbers on both domestic and international fronts.

The average seat utilisation rate was over 85% while the technical reliability rate stood at 99.63%. Vietjet's fleet consists of 103 aircrafts, including 7 wide-body aircrafts. Vietjet also operates a new fleet of aircraft and has placed large orders with Airbus and Boeing, gaining advantages in operational efficiency and financial performance.

Moreover, Vietjet has been focusing on sustainable aviation development to fly passengers on green flights that are fuel-efficient to reduce CO2 emissions. As part of its initiative in contributing to a green future, the airline is also using eco-friendly materials such as meal trays made from local bamboo and areca palm leaves. Vietjet has also accelerated the application of technology and digital transformation, moving towards paperless operations and streamlining processes to improve efficiency and minimise unintended environmental impacts.

As of June 30, 2023, Vietjet's total assets reached over VND71,500 billion (approx. MYR13.73 billion) while the debt/equity ratio and the liquidity ratio was 1.2 and 1.5 respectively. These are all within good ranges of the aviation industry.

Vietjet has received a BB+ credit rating, with a Stable outlook (VnBB+) from Saigon Ratings. This was awarded based on Vietjet’s financial capabilities which showed a solid capital structure, low debt ratio and resourceful liquidity. Additionally, commercial advantage and diversified business platforms helped Vietjet maintain its shareholder capital after the Covid-19 pandemic.

Being the largest passenger transporter among all airlines in Vietnam, especially for international routes, Vietjet is expected to achieve and even exceed its 2023 plan based on its positive business performance in the first half of the year. As such, Vietjet will continue contributing to the recovery and growth of tourism, investment, and the economy in general.