Vietjet’s Remarkable 2023: Soaring to New Heights in Global Aviation

Vietjet Aviation Joint Stock Company (HOSE: VJC) has emerged as a shining star in the global airline industry, reporting strong revenue growth of US$2.55 billion in 2023. The airline’s robust performance cements its position as a resilient and rapidly expanding force in the aviation sector.

In the fiscal year, Vietjet operated an impressive 133,000 flights, serving 25.3 million passengers (excluding Vietjet Thailand), marking a remarkable 183% year-on-year surge. Notably, 7.6 million passengers were on international flights, underlining the airline’s growing presence on the global stage.

Expanding its wings, Vietjet added 33 new routes in 2023, bringing the total to 125. The additions included connections between Vietnam and the five largest cities in Australia, solidifying its status as the leading operator between Vietnam and India. Notable routes include Ho Chi Minh City to Shanghai, Hanoi to Siem Reap, and Phu Quoc to Taipei, among others.

Cargo operations witnessed a substantial surge, with a 73% year-on-year increase, reaching a total volume of 81,500 tons. The airline’s revenue hit VND53.6 trillion (approx. SGD2.93 billion), and consolidated revenue amounted to VND62.5 trillion (approx. SGD3.42 billion), growing by 62% and 56% year-on-year, respectively.

Vietjet’s financial health remains robust, with total assets exceeding VND84.6 trillion (approx. SGD4.63 billion) and a low debt-to-equity ratio of 2. The liquidity ratio stood at 1.24, and the cash balance doubled to VND5.021 trillion (approx. SGD275 million).

In terms of taxation, Vietjet contributed approximately VND5.2 trillion (approx. SGD285 million) in direct and indirect taxes and fees in 2023.

The airline’s commitment to eco-friendly operations was evident in its fleet of 105 aircraft, including A330s. Vietjet’s carbon emissions reduction efforts resulted in fuel savings ranging from 15% to 20%. Emphasizing environmental protection and sustainable development, the airline embraced green technologies.

Vietjet secured agreements with Boeing for the delivery of 200 737 MAX aircraft and financing agreements with foreign financial institutions. The average load factor reached an impressive 87%, with a technical reliability rate of 99.72%. The SkyJoy loyalty program gained 10 million members in 2023.

Innovation remained a key focus, with the introduction of services like “Fly Now Pay Later” and the Galaxy Pay payment gateway, including Apple Pay acceptance. Vietjet passengers can now enjoy online check-in at 18 airports in Vietnam.

Recognized as one of the world’s safest low-cost airlines by AirlineRatings, Vietjet prioritized safety through conferences, training, and simulations. In 2023, the airline inaugurated an international standard Aircraft Maintenance Center in Vientiane and became an IATA training partner.

The Vietjet Aviation Academy trained over 97,000 students through 6,300 courses, while the ground services center (VJGS) at Noi Bai International Airport operated efficiently, enhancing service quality and reducing operational costs.

In summary, Vietjet has achieved unprecedented success in 2023, setting records in international network expansion, revenue, and contributions to tourism, investment, trade, and cultural exchange. The airline’s trajectory signals continued growth and influence in the global aviation landscape.