Fiji Airways has reported a solid financial position with an equity of $266 million for 2023, indicating that shareholders would receive this amount if the airline were to cease operations. According to its annual report presented to Parliament, the airline is 82.6% locally owned, with the Fijian government holding 51% of the shares, the Fiji National Provident Fund owning 30.02%, and the Unit Trust of Fiji possessing 1.58%.
Despite achieving record revenues of $1.8 billion in 2023, Fiji Airways has cautioned that “2024 will be a very different year” due to various challenges. The airline has pinpointed nine significant issues affecting its operations this year, including geopolitical tensions and increased competition.
The annual report revealed that shareholders’ equity stood at $265.7 million in 2023. The airline’s total cash reserves were recorded at $311.2 million, a decrease of 17% compared to the previous year. This sum comprises $216 million in operating cash and $95.2 million in secured term deposits, which serve as collateral for standby letters of credit facilities.
The company emphasized that this robust balance sheet reflects the effectiveness of its financial strategies and recovery efforts. During the COVID pandemic, Fiji Airways raised $200 million in equity capital by issuing up to 47,393,365 ordinary shares at a price of $4.22 each, a 74% discount compared to the end of 2019 share price.
In October 2021, the government of Fiji contributed $101.9 million to the capital raise, obtaining 24,170,428 new ordinary shares. Remaining shares were offered to the Fiji National Provident Fund and the Unit Trust of Fiji after existing shareholders chose not to participate. By June 2022, the Fiji National Provident Fund had acquired 22,061,790 ordinary shares for $93.1 million, while the Unit Trust of Fiji obtained 1,161,147 shares, equivalent to 1.58% of total ordinary shares, for $4.9 million.