Vietjet’s Q2 after-tax profit rises 71% to $45.9mln despite pandemic

The business result contrasts with VND989 billion loss the company reported in the first quarter.

Vietjet said it had proactively sought partners and implemented several financial solutions such as asset transfer and financial investment to achieve the profit in the downturn market.  

The carrier’s consolidated after-tax profit in the six-month period was VND73.6 billion ($3.2 million), down 96% from a year ago. The profit came after the increase of the solid financial base, which the company has accumulated for the past years.

Although Vietjet resumed all of its domestic flight network with 300 daily flights after the government opened the sky for domestic operation in June, a triple to five times growth compared to the figures at the country’s COVID-19 pandemic peak, it reported VND2.1 trillion ($90.5mln) loss in air transportation business in the Jan.-June period.

Air transport revenue dropped 54% to VND1.97 trillion ($84.5 million) in the period amid the COVID -19 pandemic.

The revenue drop and loss was estimated as bright in the context of gloomy global aviation sector which could face a damage of $84 billion.

The airline launched eight new routes to meet rising domestic travel demand, increasing its total domestic flight network to 52 routes with overall flight operated reached 14,000 flights. The company’s total passenger carriage reached 1.2 million passengers, marking a positive recovery for the domestic market in June.

The airline’s total asset is VND48.39 trillion ($2.0 billion) with the owner’s equity being at VND17.339 trillion ($745 million) including treasury shares.

► Budget carrier Vietjet plans to set up e-payment firm

► Budget carrier Vietjet sees 2020 profit to drop nearly 100% to $4.3mln on pandemic