Fiji Airways reported a debt of $682 million in its 2023 annual report presented to Parliament on Friday. The report does not disclose the names of the creditors.
Over the last decade, Fiji Airways’ total debt has fluctuated, recording figures such as $632 million in 2014, $601 million in 2015, and a peak of $793 million in 2021. The report notes that the airline successfully reduced its debt by $100 million in 2023.
The company refinanced $94.9 million of its debt, which included a $32 million loan from the Asian Development Bank and $10.2 million related to deferred leases with Dubai Aerospace Enterprise. The refinancing was facilitated through a $90 million loan from BRED Bank, aimed at decreasing interest expenses and mitigating foreign exchange risks.
Emerging from the challenges posed by the COVID-19 pandemic, which led to a comprehensive loss of over $578.8 million from 2020 to 2022, Fiji Airways highlighted its resilience and strategic management. The total debt surged to $793.9 million by the end of 2021, nearly double pre-COVID levels. However, in the year 2023, the airline managed to repay $100.4 million in loans and refinanced $94.9 million of offshore debt with local borrowings.
In terms of investments, Fiji Airways allocated $109 million for capital projects in 2023, including $49 million for stage two of the Fiji Airways Aviation Academy, $34 million for aircraft maintenance, and the remainder for new equipment and systems to support strategic transformation.
Fiji Airways reported a revenue of $1.8 billion in 2023, reflecting a 67 percent increase from the previous year, and total receipts of $1.9 billion, a 58 percent rise compared to 2022. This achievement marks the highest earnings in the airline’s 70-year history and sets new benchmarks for future growth, demonstrating remarkable recovery and performance that exceeds pre-COVID levels.