Summary
- Vietjet is driving tourism growth in Vietnam, with 3.5 million international passengers in the primary half of 2023.
- The airline’s aggressive pricing and expansion into recent markets, resembling Australia and India, have made air travel more convenient and cost-effective for passengers traveling to and from Vietnam.
- Vietjet’s revolutionary measures, including the introduction of Business Class and SkyJoy loyalty program, have helped it turn out to be the biggest passenger transporter in Vietnam.
Before this 12 months most Australians had never heard of Vietjet, but its aggressive route launches to Melbourne, Sydney and Brisbane and $0 airfares have modified all that. It probably shouldn’t surprise anyone that Vietjet has been just as busy opening other markets throughout Asia and beyond.
Vietjet is driving tourism growth
Today, Vietjet released an update on the primary six months of this 12 months (H1 2023), which clearly shows just how effectively the ultra-low-cost (ULCC) carrier is connecting Vietnam to the world. In the primary half, Vietjet carried 3.5 million international passengers, greater than half of the entire 6.9 million international passengers to and from Vietnam.
Photo: Huy Thoai | Shutterstock
The airline moved a complete of 12.1 million customers on 65,900 flights in H1 2023, a big 30% increase from H1 2022. All that extra flying activity resulted in an 87% year-on-year increase in consolidated revenue to $1.25 billion and a consolidated after-tax net profit of $16.3 million.
Only a handful of airlines on the planet earn more revenue from ancillary items than selling tickets, and it seems Vietjet is moving into those circles. In the primary half it doubled ancillary revenue year-on-year to $378.68 million, contributing 40% of total revenue.
Vietjet’s growth is coming from recent routes, more aircraft and seemingly infinite demand for services to, from and inside Vietnam. Within the second quarter, it opened 11 recent international routes, including to Australia, Indonesia and India, and expanded its network to 120 destinations. The network now covers 75 international and 45 domestic destinations, serviced by a fleet of 103 aircraft, including seven Airbus A330 widebodies.
Photo: Airbus.
The present narrowbody fleet is a mixture of Airbus A320-200s, A321-200s and A321neos. Vietjet also has greater than 250 narrowbody aircraft on order, including Airbus A321neos and A321XLRs and Boeing 737 MAX 8s and the upper capability 737-8-200 MAXs.
Aggressive pricing is opening recent markets
The ULCC’s aggressive pricing in domestic and international markets has made air travel essentially the most convenient, cost-effective technique of transport between Vietnam and Southeast Asia and major markets resembling Australia, India, Kazakhstan, Northeast Asia and beyond.
Australia is a first-rate example of how Vietjet is opening and expanding markets around Asia-Pacific. Since April, it has opened direct routes from Ho Chi Minh City to Melbourne, Sydney and Brisbane and can launch flights to Perth in November. Before this 12 months, around 500,000 passengers traveled on the Vietnam-Australia route, and the airline said the weekly count has now doubled and is on target to exceed a million this 12 months.
Photo: Vietjet
Much more promising is Vietjets foray into India, where it’s now operating seven routes connecting Hanoi and Ho Chi Minh City to Mumbai, Latest Delhi, Ahmedabad and Kochi. Those efforts have seen the variety of passengers traveling between India and Vietnam reach 300,000 within the H1, in comparison with 70,000 last 12 months. In Northeast Asia it operates 14 routes to South Korea, eight to Taiwan and 7 to Japan and is expanding its reach to encompass greater than 50 destinations in mainland China.
Other innovations in the primary half included the introduction of Business Class and the SkyJoy loyalty program, which has already gained greater than 8 million members. Vietjet said it’s now the biggest passenger transporter of all airlines in Vietnam, particularly on international routes and that its positive performance is constant to contribute to the recovery and growth of tourism, investment and the economy normally.
Have you ever been on a world flight with Vietjet? Allow us to learn about it within the comments.