Fiji Airways reported a robust balance sheet for 2023, showing an equity of $266 million, which indicates that this amount would be returned to shareholders if the airline were to cease operations immediately. In the annual report presented to Parliament recently, the airline highlighted that it is 82.6% locally owned, with the Fijian government holding a majority stake of 51%. The Fiji National Provident Fund owns 30.02%, while the Unit Trust of Fiji holds 1.58%.
Despite achieving a record revenue of $1.8 billion in 2023, Fiji Airways cautioned that “2024 will be a very different year than 2023.” The airline has pinpointed nine major challenges for the coming year, including geopolitical tensions and increased competition.
The annual report indicates that shareholders’ equity stood at $265.7 million by the end of 2023. The total cash reserves for Fiji Airways were recorded at $311.2 million, reflecting a 17% decrease from the previous year. This total comprises $216 million in operating cash and $95.2 million in secured term deposits, which act as collateral for standby letters of credit facilities.
The company emphasized that its strong balance sheet demonstrates the resilience of its financial strategies and the success of its recovery efforts. During the COVID-19 pandemic, shareholders approved a $200 million equity capital raise, issuing up to 47,393,365 ordinary shares at $4.22 each, which represented a 74% discount on the share price at the end of 2019.
In October 2021, the Republic of Fiji contributed $101.9 million in new equity during this capital raise, receiving 24,170,428 new ordinary shares in return. Some existing shareholders opted not to participate, prompting the board of directors 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 ordinary shares in exchange for $93.1 million in equity, while the Unit Trust of Fiji acquired 1,161,147 ordinary shares, representing 1.58% of the total shares, for $4.9 million.