Fiji Airways is reporting a robust financial position, with an equity of $266 million in 2023, indicating that shareholders would receive this amount if the airline were to cease operations. The company’s annual report, presented in Parliament on Friday, reveals that it is 82.6 percent locally owned. The Fijian government holds 51 percent of the shares, the Fiji National Provident Fund has 30.02 percent, and the Unit Trust of Fiji owns 1.58 percent.
Despite achieving a record revenue of $1.8 billion in 2023, Fiji Airways has cautioned that “2024 will be a very different year.” The airline has pinpointed nine significant areas that could challenge its operations in the coming year, including geopolitical tensions and heightened competition.
The report indicates that shareholders’ equity stood at $265.7 million in 2023. The airline also reported total cash reserves of $311.2 million, a 17 percent decrease from the previous year. This cash includes $216 million in operating funds and $95.2 million in secured term deposits, which serve as collateral for standby letters of credit facilities.
“This strong balance sheet underscores the resilience of our financial strategies and the effectiveness of our recovery initiatives,” the company stated. During the COVID-19 pandemic, shareholders approved raising equity capital of $200 million by issuing up to 47,393,365 ordinary shares at a price of $4.22 per share, reflecting a 74 percent discount from the share price at the end of 2019.
In October 2021, the Republic of Fiji participated in this capital increase, contributing $101.9 million in exchange for 24,170,428 new shares. Some existing shareholders opted not to participate, leading the board to offer 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 ordinary shares for $93.1 million, while the Unit Trust of Fiji purchased 1,161,147 ordinary shares, representing 1.58 percent of total shares, for $4.9 million.