Vietjet Aviation, the budget carrier controlled by billionaire Thi Phuong Thao Nguyen, has received a $100 million funding commitment to aid in its fleet expansion, following a successful post-pandemic rebound. The company signed preliminary agreements in the third quarter with three institutional investors based in Vietnam, and the investment transaction is expected to be finalized by the end of this quarter.
The funding will primarily be used to support Vietjet's investments in acquiring new aircraft, expanding its network, and facilitating the airline's overall growth. This comes as Vietjet reported impressive earnings, with net profit soaring by 30% to 55 billion dong ($2.3 million) during the first nine months of the year, alongside a 23% increase in consolidated revenue to 14.2 trillion dong.
In recent years, Vietjet has expanded its international destinations, particularly in Australia, Hong Kong, South Korea, and Taiwan, in response to the post-pandemic travel rebound. The addition of new routes has significantly contributed to the airline's international passenger traffic, accounting for 57% of its total revenues.
To support its continued growth, Vietjet has already placed an order for 200 737 MAX aircraft from Boeing, valued at $25 billion. The delivery of these planes is scheduled within the next five years. Furthermore, Vietjet has secured $550 million of aircraft financing from Carlyle Aviation.
Thi Phuong Thao Nguyen, Vietnam's first self-made female billionaire and founder of Vietjet, established the airline in 2011. After six years, Vietjet was listed in Vietnam. Aside from her aviation ventures, Nguyen also has investments in HD Bank and owns three beach resorts.
This significant funding injection will undoubtedly aid Vietjet in bolstering its fleet and capitalizing on the increasing demand for air travel as the world emerges from the pandemic.