Vietjet profitable in 2020, banks on ancillary revenue and cargo

Vietjet Air reports a profitable year in 2020 despite the pandemic, banking on ancillary revenue and cargo. The airline posted a consolidated after-tax profit of D70b ($3m) for the period, it said in a Sunday statement. It adds that ancillary revenue accounted for nearly half of its total revenue, “showcasing Vietjet’s efforts to promote ancillary services to offset decreasing air travel revenue”. Cargo was another bright spot for the airline, with volumes growing 16% in 2020 compared with the previous year. In the fourth quarter, Vietjet Air recorded a 75% increase in freight revenue year-on-year. To boost cargo capacity, the company configured some passenger aircraft for freight transportation. The airline also has interline agreements with other carriers, which enabled it to extend its cargo network to the USA and Europe. The airline also launched Vietjet Ground Services Center at Noi Bai International Airport in Hanoi, which has “helped the airline better manage its operating costs while improving the brand recognition and service quality”.<br/>