Vietjet eyes 10-fold jump in profits amid return to post-pandemic normalcy
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Budget airline Vietjet targets profits of VND1 trillion (US$43.14 million) this year, 10 times the 2021 figure, as it seeks to recover from a two-year slump caused by Covid-19.
It eyes a 2.5-fold rise in revenues to VND32.72 trillion. At the company’s annual general meeting on Saturday, shareholders expressed concern over the rising oil prices, but the management was optimistic.
To Viet Thang, deputy CEO, revealed that when oil prices reach $100 per barrel, operation costs increase by 50 percent.
CEO Nguyen Thi Phuong Thao said the airline has flown when oil prices were above $100 and still made profits.
“We are always ready to buy fuel at low price and store them to optimize costs.”
She also said a surcharge is levied when fuel prices surge and this eases the burden on the company.
Vietjet plans to return to its pre-pandemic schedule domestically and resume 70 percent of international flights.
Shareholders approved a plan to issue up to 54 million new shares, or 10 percent of the company’s free float.
Vietjet recently placed a $35-billion order for 200 Boeing 737 aircraft and engine maintenance services.
Questions & Answers
Q.What is the expected revenue growth for Vietjet this year?
What is the expected revenue growth for Vietjet this year?
Vietjet aims for a 2.5-fold increase in revenues this year, targeting VND32.72 trillion. This is part of its plan to recover from the two-year slump caused by the Covid-19 pandemic.
Q.How will Vietjet mitigate the impact of rising oil prices?
How will Vietjet mitigate the impact of rising oil prices?
Vietjet plans to buy and store fuel at low prices to optimise costs. A surcharge is also levied on tickets when fuel prices surge, which helps to ease the financial burden on the company.
Q.What are Vietjet's plans for its flight schedule this year?
What are Vietjet's plans for its flight schedule this year?
The airline intends to restore its domestic flight schedule to pre-pandemic levels. For international routes, Vietjet expects to resume 70 percent of its previous flight operations.
Q.How does Vietjet plan to raise additional capital?
How does Vietjet plan to raise additional capital?
Shareholders have approved a plan to issue up to 54 million new shares. This represents 10 percent of the company’s current free float, providing a means to raise further capital.
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