Vietnam’s Vietjet Air has revealed another profit increase the fast-growing LCC says puts it well ahead of its earnings target for the past two years.

Vietjet reported a net profit of VND5.3 trillion ($228.5 million) for 2018, up 4% from VND5.1 trillion in 2017.

When the airline listed on the stock exchange in early 2017, it set a target for 2017 and 2018 of achieving a cumulative net profit of VND7.8 trillion. It has, however, blown past this goal with cumulative net profits for the two years totaling VND10.4 billion.

The carrier’s revenue increased to VND53.6 trillion, up 27% from VND42.3 trillion in the previous year. About two-thirds of its 2018 revenue was generated from outside Vietnam.

The airline had another strong performance in its efforts to boost ancillary revenue, which increased by 53.5% year-on-year to VND8.4 trillion. Ancillary revenue accounted for 25.4% of all sales in 2018.

Expenses increased 29% to VND46.1 trillion compared to VND35.8 trillion in 2017. The largest area of increase was in fuel costs, which rose 64% to VND13.3 trillion from VND8.1 trillion in 2017.

Other cost areas such as labor also increased, reflecting the airline’s growth.

Vietjet said its continuing delivery of new aircraft should help reduce future operating costs. The airline said its A321neos, which began arriving in 2018, have a fuel-cost savings of 16%. By the end of 2018, Vietjet’s average fleet age was just 2.82 years.

Adrian Schofield,