BUSINESS

Vietjet posts record after-tax profit in 2016

TUOI TRE NEWS

Updated : 04/04/2017 11:45 GMT + 7

Vietjet has reported record revenue and profit in 2016, making it the low-cost carrier’s most successful year since it began operation in 2011.

The airline took VND27,499 billion (US$1.23 billion) in revenue, and VND2,496 billion ($111.43 million) in post-tax profit, increases of 39 percent and 113 percent respectively, according to its audited financial report.

Vietjet’s consolidated financial statement from 2016, audited by KPMG International Auditing, was released one month after the carrier was listed on the Ho Chi Minh City Stock Exchange.

“Profit after audit in 2016 increased by VND206 billion [$9.2 million] as the cost of goods sold was adjusted down to VND435 billion [$19.42 million],” Vietjet said in a statement.

“Earnings per share reached VND9,586, ranked [the airline] among the 20 largest capitalized companies on Vietnam’s two stock exchanges.”

As of December 31, 2016, Vietjet’s total assets reached VND20,063 billion ($895.67 million), up 67 percent from 2015, whereas equity rose 120 percent year on year to VND4,734 billion ($211.34 million).

Vietjet attributed its best-ever results to the carrier’s continuously expanding network and efficient operation.

The airline boasts a 99.57 percent technical reliability record for the A320/321 fleet - the highest among airlines in the Asia Pacific region, and an on time performance of 83.6 percent.

On March 31, one month after listing 300 million shares on the Ho Chi Minh City bourse with the floor price of VND90,000 per share, Vietjet’s share value rose 42 percent to VND128,100.

As of the end of last year, Vietjet had acquired a market share of 41 percent on domestic flights.

The carrier has recently launched a Hanoi - Siem Reap route and has plans to operate four additional domestic routes and 22 international routes, bringing the total number of routes to 86.

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