Vietjet is increasing its fleet and aiming for 25 million passengers.
Vietjet controls 40% of the domestic market in Vietnam and aims to gain 5 million more passengers this year.
The top low-cost airline in Vietnam, Vietjet, was fast to seize the opportunity presented by the opening of the Asia-Pacific travel market, but it has already established some extremely lofty objectives for 2023. The airline intends to increase its fleet of Airbus narrowbody and widebody aircraft from 77 to 87 in order to reach its goal of increasing passenger volume by 25% this year.
It appears to be a pleasant meeting.
Vietjet Aviation Joint Stock Company (Vietjet) convened its 2023 General Meeting of Shareholders yesterday in Ho Chi Minh City. During the meeting, Vietjet provided an update on its 2018 performance as well as its 2023 objectives. Given that the statement stated: “The airline must be pleased with how it is traveling,”
At the meeting, it was widely acknowledged that Vietjet has managed to overcome difficulties and ensure growth despite significant challenges to the economy in general and the domestic and international aviation industries following the pandemic. It has been successful in maintaining a strong financial sheet, laying the groundwork for sustained development in 2023 and beyond.
Vietjet established itself as the top domestic carrier in 2022 by carrying 20.5 million passengers, a 283% increase year over year, and operating more than 116,260 flights. With an average passenger load factor of 85%, its domestic market share in Vietnam in 2022 was 40%. The carrier’s audited consolidated revenue totaled VND40,142 billion (about $1.71 billion), an increase of 212% over the previous year.
With a solid debt-to-equity ratio of 1:3, Vietjet announced that in 2022, its assets climbed by more than $200 million, totaling $2.91 billion. In 2022, the airline made direct and indirect tax, fee, and charge payments to the State budget of $186,3 million.
targets with a high bar for 2023
According to Vietjet, it aims to fly 139,513 flights and carry 25.7 million passengers in 2023, an increase of 25% over the previous year. Greater than VND50,178 billion ($2.14 billion) in consolidated sales and VND1,000 billion ($42.8 million) in after-tax profit are the company’s goals.
Vietjet announced it is growing its fleet from 77 to 87 aircraft, including adding five widebody Airbus A330-300s this year to accommodate the additional five million passengers. 18 A320-200s, 36 A321-200s, 18 A321neos, and 5 A330-300s are listed as the airline’s fleet on ch-aviation.com. Despite the fact that the A330s are the only kinds mentioned in yesterday’s statement, the airline has several significant orders recorded by ch-aviation.
According to the data, 94 Airbus A321neos, 20 A321XLRs, and one A330-300 have been ordered by Vietjet. 100 high-capacity Boeing 737-8-200 MAXs and 50 Boeing 737-8 MAXs are also indicated as being ordered. Where the extra planes ultimately come from is a mystery because Vietjet can also purchase new or secondhand aircraft through lessors or on the open market.
Nine development strategy recommendations were approved for 2023 at the meeting, and management was given four goals to work toward.
preserving the leading position in the market for both efficiency and passenger volume
establishing arrangements with aircraft manufacturers Boeing and Airbus to guarantee on-time delivery; growing commercial activities in ground services, training services, and digital business; and optimizing operational and finance solutions to reduce costs while boosting efficiency.
The shareholders “expressed optimism and trust in Vietjet’s Board of Directors and Board of Management to successfully carry out the mission “Pave the sky-Connect the world”” as the meeting came to a successful conclusion.
