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🇫🇯 Fiji /Economy & Trade

Fiji Airways faces financial pressure despite record revenue

From FBC News · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Fiji Airways faces financial pressure despite record revenue, with rising costs and a $25 million loss in 2024.
  • Opposition MP Alvick Maharaj questioned the airline's financial management, including foreign exchange risks and network expansion.
  • Finance Minister Esrom Immanuel attributed the pressure to soaring fuel costs and stated a $200 million government guarantee is needed for liquidity and resilience.

Fiji Airways is under scrutiny as it faces significant financial challenges despite achieving record operating revenue. The airline reported approximately $1.85 billion in revenue for 2024, yet incurred a $25 million loss, a stark contrast to its pre-tax profit of $131.8 million in 2023.

Fiji Airways is facing financial pressure despite recording about $1.85 billion in operating revenue last year. Questions are now being raised in Parliament over its rising costs, losses and need for further government-backed borrowing.

— Article TextIntroduction to the financial concerns surrounding Fiji Airways.

Opposition Member of Parliament Alvick Maharaj voiced concerns in Parliament regarding the airline's escalating costs, which reportedly rose to about $1.5 billion in 2024. He also highlighted foreign exchange risks, citing an $83.5 million unrealized loss on US dollar-denominated leases, and questioned the airline's network expansion strategy against Fiji's visitor numbers.

How the airline can generate record revenue while still requiring government-backed borrowing.

— Alvick MaharajOpposition MP questioning the airline's financial management.

However, Finance Minister Esrom Immanuel defended the airline, attributing its current financial strain primarily to a dramatic increase in aviation fuel costs. He described the fuel crisis as the most severe shock to Fiji Airways in over 50 years, with the fuel bill rising by approximately $130 million in the second quarter of 2026 compared to the previous year. The proposed $200 million government guarantee aims to address immediate liquidity needs and bolster financial resilience, with funds allocated to replace restricted cash collateral and support working capital facilities.

The fuel crisis as the biggest shock Fiji Airways has faced in more than 50 years.

— Esrom ImmanuelFinance Minister explaining the impact of rising fuel costs.

The government considers Fiji Airways a vital strategic asset for tourism, trade, employment, and connectivity. Parliament unanimously approved the guarantee, and the airline is now targeting a return to profitability next year.

The Government maintains the airline is a critical strategic asset because of its role in tourism, trade, employment and international connectivity.

— Article TextGovernment's justification for supporting Fiji Airways.
DistantNews Editorial

Originally published by FBC News in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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