Highest ever earnings for National Airline
09th May 2024: The Fiji Airways Group has today announced a record Profit before Income Tax of $131.81 million and Operating revenue (earnings) of $1.8 billion – both of which are the highest ever in the history of the National Airline.
The Group has released its Financial Results for the period ending December 31, 2023.
Summary of highlights:
- Operating Revenue - $1.8 billion (+ 67%)
- EBITDA 3 - $370.6 million (+171%)
- Profit before Income Tax - $131.8 million (+180%)
- Cash receipts from operations - $1.9 billion (+58%)
- Debt - $100 million repaid
- Seat capacity available/offered - 2.8 million (+47%)
- Passengers carried (flown) - 2.2 million (+57%)
- Equity restored to $265.7 million, amounting to 50% of pre-pandemic levels
- 2,051 employees (+37%)
2023 marked a transformative year for Fiji Airways, characterized by a full-scale ramp-up in operations and unprecedented growth. The financial year saw the complete reopening of international markets and full restoration of the Group's 2019 network coupled with significant growth.
The Group also continued to invest in its valued customers and enhanced its fleet with a groundbreaking lease deal of two additional new state-of-the-art Airbus A350-900 XWB aircraft.
These aircraft have significantly increased capacity (seats), enabling a boost to operational capabilities and providing benefits from significant fuel savings.
As a result, Fiji Airways was well-positioned to offer more flights, support the introduction of new routes and meeting rising demand, as well as improving service delivery.
The airline flew 26,586 international, regional and domestic flights representing a growth of 40 percent from 2022.
Based on the record-breaking financial performance, the Fiji Airways Board of Directors has endorsed a Profit Share payout of $5,000 to all eligible non-management employees to recognise their hard work and dedication.
The Fiji Airways Board of Directors also approved the payment of an interim Dividend of $15 million.
Mr. Andre Viljoen, Fiji Airways Managing Director & CEO, said “I am extremely proud of the commitment and determination shown by the entire team to help achieve these historic results. Given the difficult times that the company and the nation has come through during the COVID-19 pandemic, reaching these milestones in such a short time, is testament of the GRIT and TENACITY of the Fiji Airways Vuvale (family). An airline that consistently punches above its weight.
When borders closed in March 2020, the Executive Leadership Team developed a Future-Fit Strategic Plan to ensure the National Airline was positioned to SURVIVE through the COVID-19 Pandemic, and READY to THRIVE when the borders opened.
Come December 1st 2021, Fiji Airways was the first mover in the region to resume flights with our competitors many weeks behind. The National Airline led the charge and capitalised on pent up demand for travel, especially from our key markets; Australia, United States of America and eventually New Zealand.
Today, we are seeing the benefits of all these actions.”
Fiji Airways Group Chairman Mr. Nalin Patel has also congratulated the company for the stellar performance saying, “The record breaking revenue earnings and profit shown by the National Airline are truly remarkable.
My fellow Board members and I congratulate Andre and the entire team at Fiji Airways for their commitment and their motivation towards being a market leader and financially sound business that is future-fit to ensure long term, sustainable growth.
With these results, the company has demonstrated that it is living up to its Strategic Purpose; We Fly for Fiji.”
Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics Hon. Professor Biman Prasad was also on hand to address staff at the announcement today.
“I want to put into perspective exactly what these financial results mean not just to the National Airline – but to the country. The $1.8 billion revenue (earnings) is a direct injection into the economy.
It spurs activity not just in the tourism sector but across the national economic landscape by way of salaries, the purchases of goods and services, payment of utilities, new investments and countless other daily transactions - all of which collectively fuel the engine of growth.
All of your efforts have helped build lives, paid for education, basic health services and assisted in the uplifting of national infrastructure,” he said.
Other key achievements for 2023:
- Introduced new services to Canberra in Australia and Noumea in Caledonia.
- Resumed of flights to Adelaide, Hong Kong and Tokyo.
- Full year of service direct to Vancouver, Canada.
- Signed partnerships with JetBlue and Porter Airlines, further expanding our footprint in North America
- Implemented Unbundled Fares to allow customers the option to ‘Fly Your Way’.
- Created a dedicated ESG function focused on widening our sustainability improvements/actions
- Secured major Sponsorships; including Fiji Men’s and Women's’ National 7’s teams, Fijian Drua, Melbourne Storm, Kaiviti Silktails, LA Galaxy and NRL Vegas Round
- Commenced Phase 2 construction of our world class Fiji Airways Aviation Academy which includes the addition of CAE A350 and ATR full flight simulators and more, estimated to cost $130 million - $49.3 million spent in 2023.
- Refinanced Asian Development Bank (ADB) loan of US$32m and deferred leases of US$10.2m of Dubai Aerospace Enterprise, through domestic borrowings to reduce interest costs and foreign exchange exposures.
- Promoted or progressed 47 local Fijian pilots via training at the Fiji Airways Aviation Academy
- Operated first ever flight fueled by Sustainable Aviation Fuel operated out of Singapore
- Acquired additional shares in Richmond Pte Limited trading as Sofitel Resort and Spa to increase shareholding to 50%
- Acquired shares in the new Vatu Talei Pte Limited - 190 room resort development estimated to cost over $230.0 million and expected to commence operations in late 2026