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 ceased operations. The airline’s annual report, presented in Parliament, reveals that it is 82.6 percent locally owned, with the Fijian government holding 51 percent of the shares, the Fiji National Provident Fund owning 30.02 percent, and the Unit Trust of Fiji possessing 1.58 percent.
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 including geopolitical tensions and heightened competition. The report notes that shareholders’ equity closed at $265.7 million.
The airline’s total cash reserves stood at $311.2 million, a 17 percent decrease from the prior year, which comprises $216 million in operating cash and $95.2 million in secured term deposits used as collateral for standby credit facilities. The company highlighted that its robust balance sheet reflects the success of its financial strategies and recovery efforts.
During the COVID pandemic, shareholders approved a capital increase of $200 million through the issuance of up to 47,393,365 ordinary shares at an initially discounted price. In October 2021, the Fiji government contributed $101.9 million in exchange for 24,170,428 shares. The other shareholders chose not to take part in the capital raise, prompting the board to offer the remaining shares to the Fiji National Provident Fund and the Unit Trust of Fiji.
In June 2022, the Fiji National Provident Fund acquired 22,061,790 shares for $93.1 million, while the Unit Trust of Fiji purchased 1,161,147 shares, representing 1.58 percent of total ordinary shares issued, for $4.9 million.