Vietnam’s low-cost carrier, VietJet Air, has announced its third-quarter financial statement, revealing air transport revenues and profit before taxes were VDN 10,415 billion ($448 million USD) and VDN 1,310 billion ($56 million USD), respectively. The figures showed an increase of 17 percent year-on-year with average load factors around 88 percent.
The reports also showed ancillary revenue has reached 28.3 percent of the total revenue. The carrier mentioned that maximizing ancillary revenue is a key success of an airline because of its over 90 percent profit margin. According to the carrier, VietJet Air was ranked the 12th in terms of ancillary revenue to total air transport revenue ratio.
Vietnam is one of the fastest-growing aviation markets. In response to a huge demand in the country, VietJet Air has announced the purchase of 15 Airbus A321XLR and five A321neo aircraft with the first aircraft of the new order is expected to be delivered in 2023. The carrier has ordered a total of 186 A320 family aircraft including the new order and 60 aircraft have been delivered thus far.
VietJet President & CEO Nguyen Thi Phuong Thao said, “Following the signing of this contract, the new A321XLR will be the perfect upgrade to VietJet Air’s fleet as we look to grow our international flight network.”
The A321XLR allows VietJet Air to provide longer services, such as to Australia and Russia, with lower fuel consumption.
“This order is another endorsement of our decision to bring true long-range capability to the single-aisle market with the A321XLR, enabling to extend their networks at the lowest possible cost,” Airbus CEO Guillaume Faury said.
In addition to its large order, the low-cost airline also confirmed a new training agreement with Airbus Services. Airbus will place A320 family full-motion flight simulators in Ho Chi Minh City and provide a range of training services to the airline.
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