Fiji Airways has reported a robust balance sheet, showing an equity of $266 million in 2023. This figure indicates that, in the event of a sudden closure, shareholders would receive this amount. According to the airline’s 2023 annual report, presented in Parliament recently, the airline is predominantly locally owned, with 82.6 percent ownership. The Fijian government holds 51 percent of the shares, while the Fiji National Provident Fund owns 30.02 percent, and the Unit Trust of Fiji has 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 challenges for the upcoming year, which include geopolitical tensions and intensified competition.
The annual report notes that shareholders’ equity finished at $265.7 million this year. Total cash reserves for Fiji Airways reached $311.2 million, reflecting a 17 percent decline from the previous year. This total comprises $216 million in operating cash and $95.2 million in secured term deposits, which are used as collateral against standby letters of credit facilities.
The airline highlighted that this solid balance sheet illustrates the strength of its financial strategies and the success of its recovery efforts. During the COVID-19 pandemic, the airline’s shareholders approved raising $200 million in equity through the issuance of up to 47,393,365 ordinary shares at an issue price of $4.22 per share, representing a 74 percent discount from the share price at the end of 2019.
In October 2021, the Republic of Fiji contributed $101.9 million in new equity for 24,170,428 new ordinary shares as part of this capital raise. Some existing shareholders chose not to participate, prompting the board of directors 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 obtained 1,161,147 ordinary shares, constituting 1.58 percent of total shares issued, in exchange for $4.9 million.