Fiji Airways CEO flags another annual loss as fuel costs soar

By Andrew Curran.

The CEO of Fiji Airways has warned that the majority state-owned carrier will post a loss for 2026, citing more than a doubling of fuel prices. But Paul Scurrah says the airline has developed a five-year pathway to profitability that includes, among other things, a focus on network depth rather than breadth.

“It won’t be out of step (with previous years) to see a loss posted for 2026,” Scurrah told Fiji’s Straight Talk this week.

Fiji Airways lost FJD25 million (USD11.2 million) in FY2024, followed by a FJD40.3 million (USD18 million) loss in FY2025. Fiji’s financial year runs from July 1 to June 30.

Dating further back were losses exceeding FJD660 million (USD295 million) accrued during the pandemic as well as substantial debts incurred at the time, which still weighs on the airline’s balance sheet.

“We’ve got to restructure the business to be healthy,” said Scurrah, who took on the top job at Fiji Airways 12 months ago.

“We’ve reconstructed a five-year plan that has a clear path to sustainable profit,” Scurrah added. “That’s a really important step in the restructuring and resetting of Fiji Airways.”

Fuel costs bite but other areas of the business also need work

Scurrah’s immediate cost challenge is fuel, which he says could cost the 23-aircraft airline an additional FJD300 million (USD133.9 million) this year compared with 2025.

“It has hurt us,” the CEO admitted. He also said the airline was implementing a much more dynamic hedging programme.

“In the future, we’ll have a little less volatility (in fuel costs) even if the market does fluctuate… We’re taking steps to strongly protect (the airline) going forward.”

Scurrah also says that, in his personal view, the airline needs some financial restructuring, a reset of certain cost bases and a redirection of some priorities.

“We have to be self-sustaining, and we have to be profitable in the worst of times, not just the best of times,” he said.

Fiji Airways CEO eyes network depth over breadth

Fiji’s economy is heavily reliant on tourism, and Fiji Airways carries the bulk of tourists travelling into and out of the country. Scurrah says it is critical that the airline deploys its aircraft to markets where there is maximum demand for flights to Fiji.

“I'd rather have a smaller number of high-performing routes with high frequency than having a bit of everything everywhere,” he said.

In September, Fiji Airways axed its Dallas–Fort Worth flights, which Scurrah said were filling only around 60% of available seats and represented the airline’s most expensive route to operate in terms of fuel consumption.

“That became a big issue when fuel prices went up,” he said.

The A350-900 previously used on the Dallas route was redeployed to other markets, including Vancouver (YVR), where bookings are now “way up”, and Hong Kong (HKG), where “the bookings are very strong as well”.

“We're getting much more out of the fleet, and that brings a lot more tourists into Fiji,” said Scurrah, adding that every route is always under review.

The CEO said that, with only 23 aircraft, the airline had limited access to additional capacity and that “where we put them matters”.

Canberra flights axed, WSI flights start soon after

In February, Fiji Airways is also ending its relatively short-lived services to Canberra Airport (CBR), effectively redeploying the B737-8 operating the route to Western Sydney Airport (WSI), where the airline is starting flights in March. Scurrah believes the new service will be popular and well supported.

“We're going to put (the aircraft) where we can get the most tourists who come and create the most jobs in Fiji,” he said.

While noting the success of the Nadi (NAN) – Christchurch (CHC) flights, which are increasing in frequency, Scurrah is particularly bullish about his home country.

“There’s a lot of growth to come out of Australia,” he said. “We're doing (that growth) through expanding the amount of ports that we fly in and out of.”

Photo: Fiji Airways
Contact the writer: andrew@aerosouthpacific.com