Fiji Airways says it is closely monitoring a sharp global rise in jet fuel prices that has doubled this month following the outbreak of wider conflict in the Middle East, and is preparing measures to manage the cost shock while trying to capitalise on increased tourist interest in Fiji.
Managing director and chief executive Paul Scurrah told The Fiji Times the surge in fuel costs — which he described as a shock felt across the aviation industry — has forced the national carrier to check both price and supply daily. “The shock we’re feeling at the moment, like every airline in the world, is a shock associated with the spike in fuel prices,” he said, adding that the company is “contemplating doing, which every airline who’s affected is doing, is making sure that on our revenue side, we can recover enough to cover the increasing costs that’s coming with fuel.”
Scurrah, who steered Virgin Australia through the upheaval caused by the COVID-19 pandemic as its chief executive, said Fiji Airways is weighing a range of cost-management steps but gave no specifics. He stressed the airline is focused not only on protecting margins but also on seizing a window of opportunity: Fiji’s reputation as a safe, family-friendly destination and its geographic distance from the conflict has driven a “big increase in interest in coming to Fiji,” Scurrah said. “So it’s a very different crisis to COVID. It’s an interest to us to make sure we manage the costs and also to capitalise on the opportunity to get greater visitor numbers to Fiji. And the people of Fiji are relying on us to do that.”
The airline’s comments come amid wider concern across the region about fuel supplies and prices. The Fijian Competition and Consumer Commission warned earlier this month that heightened tensions around the Strait of Hormuz could push up domestic fuel costs because Fiji is a price taker for global markets. In January, Fiji Airways had already been forced to impose operational limits on some regional routes to Funafuti and Vavaʻu after fuel availability at destination airports constrained uplift options, underscoring the vulnerability of Pacific services to disruptions in supply.
Industry analysts say sudden spikes in jet fuel can quickly feed into higher airfares through fuel surcharges, frequency cuts or capacity adjustments, but also that routes perceived as safer or more desirable can see stronger demand despite rising costs. For Fiji, tourism remains a vital source of foreign exchange and employment, so any strategy that pushes up ticket prices risks denting demand if not managed carefully.
Scurrah framed the current situation as a balancing act: contain the immediate financial impact of fuel inflation, maintain reliable schedules for a tourism-dependent economy, and capture the uptick in bookings. Fiji Airways’ ongoing daily monitoring suggests any passenger-facing changes — such as temporary surcharges, schedule tweaks, or capacity management — could be signalled in the near term as the carrier adapts to volatile fuel markets.
For now, the airline has signalled vigilance rather than immediate operational changes, but travellers and tourism businesses will be watching closely for any announcements on fares, surcharges or route adjustments as the fuel-price picture evolves.
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