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VietJet targets 36% increase in 2017 net profit to D3.4t

VietJet Air has set a net profit target of D3.4 trillion ($150 million) in 2017, a 36% year-on-year increase from its D2.5 trillion net profit in 2016.

The revenue targets for 2017 is D42 trillion, a 52.7% increase from 2016 revenue of D27.5 trillion.

The carrier released the targets in a statement following its annual general meeting (AGM).

VietJet did not respond to FlightGlobal's requests for comments on what would the new foreign ownership cap will be, and how will this could effect its shareholding structure.

Reports have suggested that the airline plans to raise the cap from 30% to 49%. For the carrier to raise this limit, it will have to obtain approval from the country's prime minister Nguyen Xuan Phuc, as airlines are considered to be a "restricted industry" by the Vietnamese government.

When the airline conducted its initial public offering (IPO) in February, documents only showed its top three shareholders, who collectively hold a 38.14% stake in VietJet. The largest shareholder was identified as a Vietnamese investment company Sunflower Sunny Investments with a 23.2% stake, followed by the airline’s president and chief executive Nguyen Thi Phuong Thao with a 9.42% stake. Singapore sovereign wealth fund GIC is the third-largest shareholder with a 5.48% stake.

Prior to the IPO, Sovico Holdings held an 80% stake in VietJet with the remaining 20% held by other unknown entities.

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