Vietjet's audited business results of H1/2019 showed the revenue of passenger transport stood at VND18,984 billion, an increase of 17% year-on-year for the airline. Accordingly, ancillary revenue of passenger transport reached to VND5,429 billion, an increase of 43% year-on-year mainly thanks to the growth of international passenger transportation. The proportion of ancillary revenue in total air transport revenue was 27%. The 2019 CarTrawler Ancillary Revenue YearBook (*), which comprises statistics from more than 100 airlines’ audited financial statements, showed that Vietjet is ranked the 12th in terms of ancillary revenue to total air transport revenue ratio.
According to the sustainable development model of low-cost carriers (LCCs), ancillary revenue is a decisive factor in the success of a carrier when its profit margin reaches over 90%.
Aiming to expand its service ecosystem and continue on a path of sustainable development, Vietjet has planned to provide ground services for itself at Noi Bai International Airport in Hanoi from 2020. This will bring benefits to both customers and the airline, including improvement of service quality and ancillary revenue.
Vietjet aims to reach the Top 5 airlines for ancillary revenue in the near future.
(*) https://bit.ly/2kUkoam