VietJet predicts 10-fold jump in profits this year

A VietJet aircraft is seen at Tan Son Nhat International Airport in May 2021. Photo by VnExpress/Quynh Tran

Budget airline VietJet targets profits of VND1 trillion (US$43.14 million) this year, ten times the 2021 figure, as it seeks to recover from a two-year slump caused by Covid-19 reports VN Express.

It eyes a 2.5-fold rise in revenues to VND32.72 trillion.

At the company’s annual general meeting on Saturday, shareholders expressed concern over the rising oil prices, but the management was optimistic.

To Viet Thang, deputy CEO, revealed that when oil prices reach $100 per barrel, operation costs increase by 50 percent.

CEO Nguyen Thi Phuong Thao said the airline has flown when oil prices were above $100 and still made profits.

"We are always ready to buy fuel at low price and store them to optimize costs."

She also said a surcharge is levied when fuel prices surge, and this eases the burden on the company.

VietJet plans to return to its pre-pandemic schedule domestically and resume 70 percent of international flights.

Shareholders approved a plan to issue up to fifty-four million new shares, or 10 percent of the company’s free float.

VietJet recently placed a $35-billion order for two hundred Boeing 737 aircraft and engine maintenance services.

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