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VietJet CEO says net profit to climb 30 percent in 2017

By Reuters January 10, 2017 | 02:05 am PT

An airplane of Vietjet Air is seen before a flight at Noi Bai airport in Hanoi. Photo by Reuters/Kham

The carrier has the financial backing it needs for big aircraft orders from Airbus and Boeing, the CEO said.

Private Vietnamese airline VietJet expects net profit to climb 30 percent in 2017, after its bottomline almost doubled over the past 12 months, founder and CEO Nguyen Thi Phuong Thao said in an interview on Tuesday.

Thao said the budget airline's pre-tax profit rose 91.6 percent year-on-year in 2016 to VND2.3 trillion ($101.9 million).

VietJet sold shares last month with a public offering that valued the group at $1.2 billion. The shares are set to begin trading in February. Thao said 26 foreign investors bought shares in recent placements.

Thao said VietJet has the financial backing it needs to finance the country's biggest ever aircraft order from both Airbus and Boeing.

The carrier, which is expanding its international routes, announced in May last year that it had ordered 100 Boeing 737 MAX 200 jets – worth $11.3 billion at list prices – and months later placed a $2.4 billion order with Airbus for 20 A321s.

It had debt of VND5 trillion ($221.53 million) as of end-September, Thao said.

The CAPA Center for Aviation has said that VietJet commands 40 percent of Vietnam's domestic market and it will likely surpass Vietnam Airlines this year as the country's biggest domestic carrier.

> IPO to value Vietnam's budget airline VietJet at $1.2 billion