Tongan Government to inject more cash into Lulutai Airlines

By Andrew Curran.

The Tongan Government will allocate TOP3.2 million (USD1.37 million) to support struggling state-owned carrier Lulutai Airlines, according to budget estimates presented to the island nation’s parliament on May 19, 2026. The funding follows a failed attempt last year to sell the airline.

When proposing to privatise Lulutai last year, the former government claimed the airline owed around TOP40 million (USD17.1 million) and required TOP7 million (USD3 million) just to stay in the air.

But a general election in November 2025 saw a new regime installed in Nukuʻalofa and the politicial push to sell off Lulutai Airlines waned.

In any case, the potential buyers that had run the ruler over the airline had all walked away, saying the high debt levels made the business unviable.

New government, new attitude towards Lulutai Airlines

The current government, led by the 8th Lord Fakafānua, Fatafehi Kinikinilau Lolomana‘ia Fakafānua, is reportedly taking a sanguine view about keeping Lulutai Airlines in public ownership, even if it remains loss-making, and the latest round of funding is being viewed as a sign that the current government will continue supporting the airline.

Lulutai Airlines is Tonga’s only domestic airline. It began operations in 2020 following the collapse of Real Tonga. The airline performs an important public service, connecting Tonga’s capital with ʻEua (EUA), Ha'apai (HPA), and Vava'u (VAV).

The airline currently has two operational aircraft, a Chinese-built Y12 and a DHC-6-300 Twin Otter. A third aircraft, a Saab 340B, has been grounded since veering off a runway while taxiing and colliding with a bund in late 2023.

Tonga’s 2026/27 financial year begins on July 1.

Photo: AI-Generated.

Contact the writer: andrew@aerosouthpacific.com