Vietnam’s Vietjet Air’s first-quarter earnings report shows strong momentum in revenue and profit growth, as the airline continues its international expansion.

The low-cost carrier’s consolidated profit after tax was VND1.5 trillion ($62.8 million) in the first quarter, up 7% year-over-year (YOY). Total revenue rose 9% to VND13.6 trillion. These results exceeded the airline’s business plan estimates, which has been a continuing trend with the Vietnamese LCC.

Vietjet said its core revenue from air transport increased 28% to VND10.1 trillion. Pre-tax profit from air transport rose by 25.3% YOY. The revenue increase was particularly notable in the international operation, with the share of international revenue surpassing domestic to reach 55% of the total.

There were four international and two domestic routes launched in the first quarter. Vietjet noted its international routes tend to have higher profit margins, and they also help the carrier increase its foreign currency revenue and access lower prices in international fuel markets.

Ancillary revenue rose by 45.1% to VND2.6 trillion. Ancillary revenue accounted for 26.3% of air transport revenue in the first quarter, up from a share of 25.4% in the fourth quarter of 2018 and 23.1% in the first quarter of 2018.

Adrian Schofield, adrian.schofield@informa.com