Vietjet profits down 29% in Q1, Vietnam Airlines reports losses

Budget carrier Vietjet Air recorded an after-tax profit of nearly VND173 billion ($7.37 million) in the first quarter of 2023, down 29% year-on-year, while national flag carrier Vietnam Airlines made a loss of VND37.3 billion ($1.59 million).

Vietjet Air earned a net revenue of VND12.9 trillion ($549.67 million), up 2.8 times, according to its financial statement.

In the first three months of the year, Vietjet operated 31,300 flights, transporting nearly 5.4 million passengers, up 57% and 75% compared to Q1/2022, respectively. The airline's flights achieved an average seat occupancy rate of 85%.

In Q1, the total volume of goods transported by Vietjet reached more than 14,800 tons, up 20% over the same period in 2022.

International passenger transport continued to be a bright spot, contributing nearly 45% of total passenger transport revenue and accounting for 30% of the number of flights and passengers.

As of March 31, Vietjet's total assets stood at VND69.2 trillion ($2.95 billion).

The Vietjet Aviation Joint Stock Company is listed on the Ho Chi Minh Stock Exchange as VJC. It closed last Friday, the latest trading day, at VND97,000 ($4.13).

Meanwhile, Vietnam Airlines reported a loss of VND37.3 billion ($1.59 million) in Q1, significantly improved compared to a loss of VND2.69 trillion ($114.45 million) in the same period last year.

Its net revenue reached nearly VND23.49 trillion ($1 billion), up 102% year-on-year and its highest quarterly revenue since 2020.

The airline said its loss after tax decreased in Q1 as revenue from service provision rose 116% over the same period last year, of which domestic revenue increased by 76.5% and international revenue surged 618.5% on strong market recovery.

The airline has reopened its entire domestic flight network to pre-pandemic levels, as well as 90% of international routes.

In Q1/2023, Vietnam Airlines transported 5.1 million passengers, up 63% year-on-year. Of which, international arrivals reached 1.4 million (including charter flights), 11.5 times higher than Q1/2022 and equal to 61% of Q1/2019.

Domestic arrivals reached 3.7 million, up 23.1% compared to Q1/2022 and up 12.4% compared to Q1/2019.

As of March 31, 2023, Vietnam Airlines' total assets had reached VND59.58 trillion ($2.54 billion). Of which, cash and bank deposits accounted for more than VND3.9 trillion ($166.2 million).

In mid April, the Ho Chi Minh Stock Exchange (HoSE) decided to put HVN shares of national flag carrier Vietnam Airlines on warning from April 25 due to delayed 2022 audited financial statements.

HVN shares finished at VND12,100 ($0.52) at the close last Friday.