Fiji Airways, the flagship airline of Fiji, is actively working to mitigate the financial repercussions of significant debt incurred during the COVID-19 pandemic. As of July 31, the airline reported a total debt of $678 million, a figure that was disclosed by Nalin Patel, the group chairman, during a presentation of the airline’s 2023 annual report to the Parliamentary Standing Committee on Social Affairs in Suva.
Patel highlighted the progress the airline has made in reducing its debt burden, having successfully reduced it by $100 million from $782 million at the end of the previous year. This step reflects Fiji Airways’ persistent efforts to recover from the economic fallout of the pandemic, during which it experienced staggering losses exceeding $578 million from 2020 to 2022. In 2023, Fiji Airways managed to repay $100.4 million in loans, while also converting approximately $95 million in offshore debt into domestic loans at more favorable interest rates.
The annual report outlines the introduction of a new loan in 2024, which raised the total debt to $722.1 million. This included the acquisition of $150 million, although it was counterbalanced by loan repayments of $110 million within the same year. Despite these challenges, Patel expressed optimism about the airline’s financial health, citing positive projections for revenue as it emerges from the challenges posed by the pandemic.
During the committee meeting, Patel and outgoing CEO Andre Viljoen answered questions regarding the debt agreement with the Fiji National Provident Fund (FNPF). Viljoen reassured that this debt is backed securely and is being serviced annually, with FNPF remaining comfortable thanks to strict repayment requirements.
Fiji Airways has also made substantial investments in various capital projects, committing $109 million in 2023 towards initiatives including the second phase of the Fiji Airways Aviation Academy and improvements in aircraft maintenance. These investments signify the airline’s dedication to enhancing its operational capabilities and strategic outlook.
Financially, 2023 was a noteworthy year for Fiji Airways, which reported revenues of $1.8 billion—an impressive 67% increase compared to the previous year. Total receipts reached $1.9 billion, reflecting a 58% rise and the highest earnings in the airline’s 70-year history, thus surpassing pre-pandemic figures. This financial turnaround suggests a strong recovery trajectory for Fiji Airways and underlines its commitment to restoring financial stability in the coming years.