Vietnamese low-cost airline VietJet has reported strong results from a rebounding 2022. Last year the airline carried over 20.5 million passengers throughout its network, an increase of 20% compared to pre-pandemic 2019. Domestic passenger demand has remained strong throughout the year, with the airline reporting a 24% increase in the year's final quarter.

With the airline expanding its reach with international destinations, the carrier adopted a fleet of three widebody Airbus A330-300's. It introduced routes to Kazakstan while further expanding its presence in India.

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103 routes on offer

With 20 new routes introduced in 2022, VietJet's network now has over 103 routes on offer. The carrier's mix of Airbus A320, A321, and A330 accommodates the strong demand seen by its Vietnamese travelers. The airline focussed on its presence in India last year, boosting economic tourist hubs and trade.

The airline's most recent announcement is to introduce operations down under, commencing direct flights from Ho Chi Minh City Tan Son Nhat International Airport (SGN) to Melbourne Tullamarine Airport (MEL) from April, competing head to head with three other carriers, Vietnam Airlines, Bamboo Airways, and Jetstar Airways.

323 aircraft on order

As the airline continues to expand, it has an astonishing 323 aircraft on order, predominantly for its Vietnamese arm, as 50 are expected to be delivered for its Thai counterpart - Thai VietJet Air (VZ).

The airline currently is composed of a sole Airbus fleet. However, it expects delivery of 66 Boeing 737 MAX 8, 106 Boeing 737 MAX 10, and 28 Boeing 737 MAX 200 from 2024 through 2028.

Airbus deliveries are also still en route, with 99 Airbus A321neo, 20 Airbus A321XLR, and four further Airbus A330-300 expected to join the fleet.

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The numbers

For the last quarter of 2022, Sovico Holdings and HD Bank, the low-cost carriers parent company, reported net revenue of VND7,352 billion (approx. US$315.5 million), increasing its profit 175% year on year at VND902 billion (approx. US$38.7 million).

Revenues for the year 2022 reached VND32,506 billion (approx. US$1.39 billion), which in return profit accounted for VND215 billion (approx. US$9.23 million). Through heavy capital investment, the airline reported consolidated revenue of VND39,342 billion (approx. US$1.68 billion) in 2022. However, with aircraft and development costs, a consolidated loss of VND2,171 billion (approx. US$93.1 million) was evident.

At the end of 2022, VietJet’s assets reached more than VND 67,000 billion (approx. US$2.87 billion), improved by 30% on last year, a result of its long-term assets increasing over $200 million. Reported at the end of December 2022, a balance of cash and cash equivalents required for liquidity and operations has solidified near VND1,800 billion (approx. US$77.3 million), which is vital to ensure continued day-to-day expenses, especially in the post-pandemic fragility we see of the aviation market.