Fiji Airways Group yesterday released its financial results for their Financial Year 2019. They made a profit of FJ$61.2 million for the period, an increase of 10.67% compared FY18 results. Revenue for the period was FJ$1.12 billion compared with FJ$1.02 billion made in FY18. The airline’s operating profit jumped up 17.80% YoY to FJ$58.9 million this is impressive given that passengers carried increased by only 1.80% to 1.7 million in the same period amid direct competition from heavyweights Qantas, it seems like the group managed to improve their yields.
|Operating Profit before Tax FJ$m||58.9||50||17.80%|
|Profit before Tax FJ$m||61.2||55.3||10.67%|
The airline during the period experienced the major investment they made on their fleet after the acquisition of 2 Airbus A350-900 XWB aircraft while also being handed over the completed Aviation Academy in December which comes in handy as the airline is able to train their pilots locally without the need to send their pilots overseas which saves them money and also with certain travel and border restrictions in place due to the COVID-19 Pandemic it ensures that Fiji Airways is able to certify their pilots whenever they wish to. Key milestones for the airline included being rated as a Skytrax 4 star rated airline and being the launch partner in the Oneworld connect partner program.
If you had worked at Fiji Airways as at 31 December 2019 and not part of the Executive Leadership, you’ll be entitled a FJ$1,000 as part of the profit-sharing scheme, you’ll be entitled to it even if you’re not currently employed.
The period also saw the carrier’s direct destination expand to 20 while increasing their network from 69 to 108 destinations which include codeshares. This is after the airline signed codeshare agreements with Singapore Airlines, British Airways, Japan Airlines, Alaska Airlines, Finnair and Air India.
Fiji Airways Group Fleet Composition
Fiji Airways had already stated that they were facing significant challenges in 2019 and took measures to reduce their expenses by undertaking a 360-degree review of their operational expenses. They saved FJ$41 million by renegotiating contracts, implemented best practices, revamped product offerings and enhanced fuel and crew management. They didn’t stop just at the operational level as they also reviewed their business model which included looking at their current network and future opportunities.
The airline notes that the COVID-19 Pandemic will cause significant operational and financial problems but are focused on business continuity despite acknowledging that the airline’s revenue in a post-pandemic world would be significantly lower.
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“When Borders Don’t Matter”
Final Year Aviation Management Student at Coventry University.