Vietnam carrier Vietjet expands network, sees 8-fold jump in H1 net profit

Vietnamese budget carrier Vietjet has reported consolidated net profits of VND1,114 billion ($44 million) in H1/2024, up 725% year-on-year, based on aggressive expansion of its flight network.

In a Tuesday filing with the Ho Chi Minh Stock Exchange (HoSE), the carrier said it has earned net profits of VND919 billion ($36.36 million) from air transportation, up a whopping 1,818% year-on-year (19-fold increase).

Revenues increased 15.3% year-on-year to VND34,015 billion ($1.35 billion), its quarterly financial statement shows. Of this VND32,890 billion came from air transport, up 31%.

The carrier said it flew a total of 70,154 flights carrying 13.1 million passengers in H1/2024.

Vietjet operated 149 flight routes in H1/2024, 38 of them domestic and the remaining 111 international. Corresponding figures for last year were 130, 45 and 85.

To feed its global expansion, Vietjet placed with Airbus an order for 20 new-generation wide body A330neo aircraft worth $7.4 billion at the Farnborough International Airshow, the UK in July 2024.

It paid a total of VND3,687 billion ($145.6 million) in direct and indirect taxes and fees in H1.

Between April and June, Vietjet earned consolidated net profits of VND578 billion ($22.87 million), compared to a loss of VND37 billion a year earlier. Its revenue slid 2.3% to VND16,223 billion.

Shares of Vietjet, listed on the HoSE as VJC, were trading at VND105,100 ($4.16) apiece at Wednesday’s break.