Fiji Airways reported a robust financial position with an equity total of $266 million in 2023, indicating that shareholders would receive this amount if the airline were to cease operations immediately. According to the airline’s annual report presented to Parliament, 82.6% of its ownership is held locally, with the Government of Fiji owning 51%, the Fiji National Provident Fund holding 30.02%, and the Unit Trust of Fiji possessing 1.58%.
Despite achieving a record revenue of $1.8 billion in 2023, Fiji Airways cautioned that “2024 will be a very different year” due to various challenges, including geopolitical issues and heightened competition. The report detailed that the shareholders’ equity amounted to $265.7 million for the year.
The airline’s total cash reserves were $311.2 million, representing a 17% decline from the previous year. This figure encompasses $216 million in operating cash and $95.2 million in secured term deposits, which act as collateral for standby letters of credit facilities.
The company emphasized that its strong balance sheet reflects the effectiveness of its financial strategies and recovery plans. During the COVID-19 pandemic, shareholders greenlit an equity capital raise of $200 million through the issuance of up to 47,393,365 ordinary shares at a price of $4.22 each, which was a 74% discount compared to the share price at the close of 2019.
In October 2021, the Fijian government contributed $101.9 million in new equity for 24,170,428 shares as part of the capital raise. Other shareholders chose not to participate, leading the board to offer the remaining shares to the Fiji National Provident Fund and the Unit Trust of Fiji.
By June 2022, the Fiji National Provident Fund purchased 22,061,790 shares for $93.1 million, while the Unit Trust of Fiji acquired 1,161,147 shares (1.58% of total shares), investing $4.9 million.