Vietjet posts US$48 million loss in Q2 with revenue down 54 percent

Air transport revenue slumped 54% YoY to VND1,970 billion (around US$84.5 million) for the April-June period.

Hanoi low-cost carrier Vietjet Vietnam

Courtesy of Vietjet

Hanoi-based low-cost carrier Vietjet posted VND1,122 billion (around US$48 million) in operating losses for the second quarter, as air transport revenue slumped 54% YoY to VND1,970 billion (around US$84.5 million), a press release confirmed. 

Vietjet said it has resumed all domestic flights when Vietnam opened up with 300 daily flights in June. The airline also launched eight new routes to meet the demandboosting its domestic flight network to 52 routes with a total of 14,000 flights operated. Total passenger carriage reached 1.2 million passengers in June. 

Looking to increase revenue and optimise operating costsVietjet expanded its cargo transport service starting in April and received government approval to deploy cargo operations in the passenger cabin (CIPC). The company also increased its charter services, expanding its self-serve ground service at Noi Bai International Airport. Other measures include stockpiling fuel reserves when prices were low in May, leading to a 25% discount compared to the market price.

Aside from its own efforts, the airline further expects government support in response to proposals by other local airlines. 

Following the Vietnamese airlines’ proposal, the government and industry authorities are in consideration of aviation support packages, including exemption of taxes, fees, aviation services, environmental tax exemptions for flight fuels, financial assistance, extension of payment term, etc.,” the release stated. 

Maintaining its cash flow for Q2, Vietjet recorded VND1,174 billion (around US$50.4 million) in financial revenue with a post-tax consolidated profit of VND1,063 billion (approximately US$45.6 million), on the back of asset transfers and financial investments.

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