Increase in Cargo Volume Gives Vital Revenue Boost to Vietjet

Vietjet transported 23% more cargo volume between April and August of this year than it did in Q1 2020.

The airline’s freight volume increased from 16,133 tons between January and March 2020 to 19,872 tons in the following five months.

The growth was driven by the domestic market with cargo transported within Vietnam seeing a leap of 54% over the first quarter.

Revenue from air cargo consequently increased by 21% in the April-August period compared to the first three months of the year, with freight revenue in the domestic market jumping by nearly 65%.

Vietjet was one of the first airlines in Vietnam to be given the green light to carry cargo in the passenger cabin (CIPC), allowing it to transport up to 20 tons of cargo on each flight.

Before COVID19, the airline's passenger aircraft would carry an average of between one and three tons of cargo per flight in the bellyhold. The deployment of cargo-only aircraft has boosted the freight volume of each flight by at least six times.

“Converting to air cargo has managed to keep the airline afloat, which means a lot to the staff, encouraging them to come up with new ideas during the crisis,” said Vietjet Air Cargo Director, Mai Trung Thanh.

According to Mai, Vietjet is considering whether to expand its freight network. Currently, Vietjet is maintaining its cargo fleet on domestic routes and a number of international ones to Japan, China, Hong Kong, Thailand and Indonesia.

 “The airline is reviewing whether to open a new route to Taiwan while increasing flight frequency on current routes. The fleet might get bigger with new passenger-to-freighter conversions depending on market demand,” Mai said.

 The airline is also planning to launch an express cargo service and an app for customers to track cargo.

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