Vietjet reports a year of success with high growth
Vietjet yesterday reported a year of success at the Annual General Shareholders Meeting (AGM) 2018 of Vietjet Aviation Joint Stock Company (HoSE: VJC –HOSE), with 91.74 percent shareholders in attendance and high approval ratings for all issues raised at the AGM.
According to the report presented by Vietjet Managing Director, Luu Duc Khanh, who spoke on behalf of the Board of Management, the company enjoyed a successful year across all categories.
Specifically, Vietjet received 17 aircraft, including the first A321 Neo in Southeast Asia. By continually saving costs efficiently and effectively, Vietjet has maintained the most efficient operating costs in the region. Indicators for operation safety and ground operation were also among the highest in the region. The airline’s technical reliability reached 99.66 percent, the highest level among the Airbus’ A320/321 fleet worldwide.
To continue its expansion of domestic routes as well as penetrating the markets in the North Asia region, up until the end of 2017, Vietjet operated 38 domestic routes and 44 international routes connecting major cities in a part of the world that is home to more than half of the world’s population. In 2017, the company operated 98,805 safe flights, transporting 17.11 million passengers, a 22 percent increase over 2016.
Besides increasing the volume of international passengers and the number of international charter flights, ancillary services also grew in proportion to the number of flights. At the AGM, Vietjet also announced that the airline had surpassed its financial targets. According to the audited and consolidated financial statements of 2017, revenue stood at VND42,303 billion (US$1.92 billion), after-tax profit stood at VND5,073 billion (US$230.59 million), with increases of 54 percent and 73 percent respectively over 2016. Earnings per share reached VND11,356 (US$0.52).
On February 28, 2017, Vietjet listed its shares on the Ho Chi Minh City Stock Exchange (HoSE) with the Board of Directors’ total commitment in applying international standards in corporate governance, management and information transparency.
On the back of these positive business results, the Board of Directors proposed and received approval from the shareholders to increase the dividend payment of 2017 from 50 percent to 60 percent. Accordingly, the company advanced a 30 percent dividend payment in cash and will pay a cash dividend of 10 percent on May 25. Vietjet will pay a further dividend of 20 percent by shares.
In 2018, the company has set a target to reach VND50,970 billion (US$2.24 billion) in revenue and VND5,800 billion (US$254.75 million) in profit, with increases of 20.5 percent and 10 percent respectively compared to those of 2017. The Board of Directors also submitted a proposal to the shareholders to increase the dividend payment of 2018 to 50 percent.
The aviation market of Vietnam and the region is expected to continue growing strongly in 2018, especially as the economy is forecast to achieve the highest GDP growth ever, and the government is promoting tourism as a key economic sector that will attract millions of tourists to Vietnam. With its expanding fleet and increasing number of new international routes to destinations in countries such a Japan, India and Australia, Vietjet is on its way to becoming a multi-national airline with a global vision and competitive abilities.