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VietJet has weathered the 2020 pandemic crisis with a consolidated profit of $ 3 million
While most airlines around the world report huge losses due to the pandemic crisis, VietJet Aviation recorded a consolidated profit (after tax) of $ 3 million for the whole of 2020.
On January 31, 2021, VietJet Aviation, the parent company for Vietnam’s Vietjet airline, reported a profit of $ 11.9 million in the fourth quarter of 2020 and a consolidated report (after tax) of approximately $ 3 million for the full year 2020, with 2% lower compared to 2019.
Although revenues decreased by about 30% compared to 2019 due to declining passenger demand, airline VietJet managed to optimize its operations and remained profitable.
VietJet has drastically reduced its daily expenses, making a 10% reduction in its daily costs. At the same time, it has reduced costs with its suppliers by 25%.
In addition, the air carrier received government support through tax cuts, including tax rescheduling, as well as reductions for air traffic control services and landing / take-off fees.
Another advantage was that Vietjet resumed operations on the entire internal network of 47 routes. In addition to passenger transport, the Vietnamese airline has stepped up cargo transport, growing by 75% in the fourth quarter of 2020 and by 16% throughout 2020.
As can be seen, there is no sure recipe for success, but by optimizing spending, the operational network, adapting to the present and supporting government, it is possible for an airline to be profitable even in these times of crisis.