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Fiji Airways announces record profit

Apr 22, 2016

NADI, Fiji - The Fiji Airways Group has had another record year of growth, announcing profits before tax of $70.2m FJD for the fiscal year which ended 31st December 2015.

The Group - comprising Fiji Airways, Fiji’s national airline, its subsidiaries Fiji Link & Pacific Call Comm Ltd, and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island - reports that profits are up by 15.5%, passenger numbers are up by 7.4% and revenue has increased by 6.3%.

• Group revenue was $815.3m compared to $767.4m for the year ended 31st December 2014.

• Group profit before tax was $70.2m compared to a $60.8m for the year ended 31st December 2014.

• Group passenger numbers of 1.3m compared to 1.2m for the year ended 31st December 2014.

Mr. Andre Viljoen, Fiji Airways Managing Director & CEO said: “Our team surpassed previous benchmarks for profits and growth, with passenger numbers (+7.4%), load factor (+0.1 pts) and RASK (+1.3%) all improving significantly, coupled with a well-controlled cost base (CASK -0.4%). These results allow us to continue our commitments to our people, our shareholders and stakeholders, who will, of course, share in our success.”

All international markets performed strongly for the Group, with the core markets of Australia and New Zealand delivering reasonable returns, coupled with strong growth from Hong Kong and Los Angeles. Fiji Link’s regional and domestic services also contributed positively to the Group performance.

Mr. Viljoen stated: “2016 presents yet another year of opportunities and challenges. Three exciting new destinations are being added to our network, with our inaugural flight to Singapore commencing last week and San Francisco and Vava’u (Tonga) all coming online by June. This gives our already impressive network even more of a boost. By the end of 2016, we will have 50 destinations in 13 countries around the world, which includes codeshare destinations; all pretty phenomenal for a small airline like ours. There will undoubtedly be challenges, as Tropical Cyclone Winston has an impact on our forward bookings. But a number of initiatives are underway with the Tourism Action Group (TAG) to address these challenges.”

In 2016, Fiji Airways will rigorously pursue a 4-star Skytrax service rating and embark on service training across the company. Every single team member will undergo a specially created Up! Your Service programme devised by world-renowned service expert Ron Kaufman and his organization.

Mr. Rajesh Punja, Fiji Airways’ Chairman said: “Our financial results will ensure that Fiji Airways continues to do its part for Fiji. Our strong financial position means we are able to reward staff and assist the country whenever possible. We stand in solidarity with our fellow Fijians who have suffered due to Tropical Cyclone Winston. We have assisted with the Government’s relief and rehabilitation efforts and will continue to do more in the coming months.”

In addition, based on the PwC audited financial statements for 2015, the Group also announced the profit-share, management and quarterly KPI-related bonus arrangements.

Highlights for Fiji Airways Performance for 2015:

• Profit Before Tax: $70.2m
• Increase in RASK (Unit Revenue) 1.3%
• Increase in CASK (Unit Cost) (0.4%) – in line with productivity growth
• Increase in passengers flown: 7.4%
• Increase in load factor: 0.1%
• Increase in trips: 6.8%
• New routes launched: Nadi-Wellington, Nuku’alofa-Vava’u
• Increased frequencies: Australia, New Zealand, Hong Kong, Tonga, Samoa, Vanuatu, Solomon Islands

Fiji Airways announces record profit

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