Fiji Airways, the national airline of Fiji, continues to confront the financial impacts of debt accumulated largely during the COVID-19 pandemic. As of July 31, the airline reported a total debt of $678 million. Nalin Patel, the group chairman, presented this figure alongside the airline’s 2023 annual report to the Parliamentary Standing Committee on Social Affairs in Suva, addressing concerns regarding its financial standing.
Patel noted that the airline has made strides in reducing its debt, having lowered it by $100 million from $782 million at the end of 2023. This reduction reflects the airline’s efforts to navigate the economic fallout from the pandemic, during which it incurred significant losses exceeding $578 million between 2020 and 2022. In 2023 alone, Fiji Airways successfully repaid $100.4 million in loans while also refinancing around $95 million in offshore debt into domestic borrowings at a lower interest rate.
The annual report further detailed the introduction of a new loan in 2024 that increased the total debt to $722.1 million due to the acquisition of $150 million, offset by loan repayments of $110 million in the same year. Despite these challenges, Patel emphasized improvement in overall financial health, with optimistic projections for revenue as the airline rebounds from its pandemic struggles.
Mr. Patel and outgoing CEO Andre Viljoen addressed inquiries from the Parliamentary Committee, specifically highlighting the debt arrangement with the Fiji National Provident Fund (FNPF). Viljoen clarified that this debt remains securely backed and is being serviced annually, with the fund comfortable owing to stringent repayment requirements.
Fiji Airways has also laid out substantial investments in various capital projects. In 2023, the airline allocated $109 million toward initiatives such as the second phase of the Fiji Airways Aviation Academy and aircraft maintenance, which reflect its commitment to enhancing its operational and strategic framework.
Financially, 2023 marked a notable turnaround for the airline, reporting revenues of $1.8 billion — a remarkable 67% increase from the previous year. Total receipts reached $1.9 billion, marking a 58% rise and the highest earnings in the airline’s 70-year history, surpassing pre-COVID figures. This success suggests a robust recovery path for Fiji Airways and a commitment to rebuilding its financial stability.