Fiji Airways has indicated that “2024 will be a very different year from 2023,” outlining nine significant challenges that could affect its operations this year.
The airline reported an operational profit of $113.2 million in 2023, marking a substantial recovery from a loss of $175 million in 2022, according to its annual report presented in Parliament. The company generated revenue of $1.8 billion, reflecting a 67 percent increase from the previous year, while receipts totaled $1.9 billion, a rise of 58 percent compared to 2022.
Chairman Nalin Patel highlighted that 2023 was characterized by strong financial performance, underscoring the effectiveness of the company’s strategic initiatives and the dedication of its workforce.
Patel noted that the airline is already facing a more complex and competitive environment for 2024, which will affect both Fiji Airways and the country as a travel destination.
The challenges identified include:
– Uncertainty in the economic environment in key markets
– Geopolitical tensions
– The ongoing war in Ukraine
– The conflict between Israel and Hamas
– Increased competition
– Fluctuating fuel prices
– Rising operational costs due to inflation
– Continuing wage inflation
– A stronger US dollar
Patel stated, “2024 will be a very different year from 2023. Despite these challenges, we remain optimistic about our ability to overcome them. These factors will impact customer demand, airfares, hotel pricing, and more, but we have a capable team ready for the challenges ahead.”