Fiji Airways releases 2024 report, posts after tax loss

By Andrew Curran.

Fiji Airways has released its delayed annual report for calendar 2024, revealing an after-tax loss of FJD25 million (USD11.2 million) despite record operating revenues that year. The airline attributes the loss to increased operating costs, industry-wide yield pressures, and foreign exchange volatility.

“The 2024 financial year was a defining period marked by resilient operational performance and sustained passenger demand amid a challenging global environment,” the report reads.

Headline metrics the airline is keen to promote include group revenue rising to a record FJD1.85 billion (USD830 million), up from FJD1.78 billion (USD800 million) in 2023.

Fiji Airways says this reflects steady passenger demand, expanded capacity, and the continued success of its network strategy.

“Passenger volumes reached 2.3 million, the highest in our history, supported by new services to Dallas Fort Worth and Cairns, additional frequencies to Adelaide, and enhanced regional connectivity through our ATR fleet,” the report adds.

Seat capacity expanded to three million, 7.9% higher than 2023, while cargo revenue also increased to FJD112 million (USD50.1 million).

The airline’s cash position increased 20.3% to FJD375.2 million (USD167.8 million). Operational net cash inflow was FJD323.7 million (USD144.7 million) over the year and capital expenditure was FJD117.4 million (USD52.5 million), which included major fleet investments.

“Fiji Airways maintained strong liquidity, expanded its global footprint, and continued major investments in fleet, training, and local talent development,” the report says.

Growth at Fiji Airways offset by rising costs

But operating costs rose to FJD1.5 billion (USD670 million), driven by increased flying activity, additional workforce investment with 177 new employees, and the full-year lease impact of the A350- 900 aircraft.

Investment in sales and marketing also increased to support new route launches and strengthen the brand across key markets.

These factors, combined with industry-wide yield pressures, reduced earnings before interest, taxes, depreciation, amortization, and restructuring or rent (EBITDAR) costs to FJD325.1 million (USD145.4 million), compared with FJD373.4 million (USD167 million) in 2023.

The report says a significant external factor was foreign exchange volatility. The strengthening of the US dollar against the Fijian dollar in 2024 resulted in unrealised translation losses of FJD83.5 million (USD37.3 million) on the airline’s USD-denominated lease obligations.

“These are accounting adjustments required under international reporting standards and do not represent cash outflows,” the report notes.

“Before these non-cash impacts, the Group delivered an operating profit of FJD23.7 million (USD10.6 million), reflecting the underlying strength of our business performance. Despite these accounting impacts, Fiji Airways’ balance sheet remains robust”

"Duality" of Fiji Airways' 2024 results

Fiji Airways operates 14 aircraft, including three A330-200s, one A330-300, four A350-900s, one B737-800, and five B787-8s. The domestic brand, Fiji Link, has ten aircraft, including one ATR42-600, five ATR72-600s, and four DHC-6-300s Twin Otters.

The Fiji Link propellor aircraft service 11 airports around Fiji and some short-haul international routes while the Fiji Airways jets service most of the 26 airports that make up the carrier’s international network.

The report notes the “duality” of the 2024 results. It highlights the strong growth in revenue, capacity, and passenger volumes on one hand. But cost pressures and foreign exchange headwinds offset the growth.

“The fundamentals remain sound,” the report says. “A modern fleet, a strong cash position, and record passenger numbers form the bedrock of our future profitability and long-term sustainability.”

The airline also noted the delay in releasing the 2024 Annual Report. It says the 2025 results are currently under audit. Fiji Airways says it plans to have these results made publicly available in a timely manner.

You can read the 2024 Annual Report here.

Photo: AI-Generated

Contact the writer: andrew@aerosouthpacific.com