Jetstar's $4.54m profit driven by low petrol price

Jetstar Pacific Airlines announces to have earned a profit of about US$4.54 million in the first four months of this year. Photo courtesy of Jetstar Pacific

This is the first time the air carrier has gained profits since it officially became part of Jetstar's global network in 2008. The network includes Jetstar Airways in Australia and New Zealand and Jetstar Asia in Singapore.

Talking with local media at a press conference, the airline's Chief Executive Officer Le Hong Ha said low petrol prices in the world market and the growth in purchasing power in the domestic airline market in the first quarter of the year were driving profits.

In April alone, 81 per cent of flights were operated on time, and by May 20, the rate reached 82 per cent. The airline has implemented measures to increase the number of on-time flights to 85 per cent as it committed with the Minister of Transport.

"In the coming time, Jetstar will continue adding three to four airplanes per year, ensuring it will catch up with the growth speed of the market. On May 27, the airline will receive a new plane, increasing the number of its airplanes to 12. Besides this, Jetstar will invest in enhancing the management system, flight attendant training, flight safety and so on to provide new value for customers," Ha said.

Jetstar Pacific, established in 1991, is the first low-cost airline operating in Viet Nam. In 1995, it was merged with Vietnam Airlines under the name Pacific Airlines. In 2007, Qantas Group of Australia purchased 30 per cent of the airline, worth $50 million, from the State Capital Investment Corporation (SCIC) to become its strategic shareholder. However, in 2012, Vietnam Airlines received nearly 70 per cent of its stake from SCIC and became its major shareholder.

Vietnam Airlines and Jetstar Pacific will carry out the next step in their double brand strategy from May 21. As planned, Vietnam Airlines will sell flight tickets for Jetstar Pacific through its ticketing system. This is expected to help passengers save costs with flights operated by Jetstar Pacific while still benefiting from services under the policy of Vietnam Airlines.

In the first four months of this year, it operated nine more local and international flight routes, raising the number of routes to 20.

Jetstar Pacific is a member of Jetstar Group which flies to 60 destinations in 16 countries and territories worldwide.