Fiji Airways reported a debt of $682 million for the year 2023, according to its annual report presented to Parliament on Friday. The report does not disclose the names of the creditors.
Over the past decade, the company’s total debt figures have varied: in 2014 it was $632 million, in 2015 it was $601 million, in 2016 it dropped to $540 million, and in subsequent years it was $475 million in 2017, $425 million in 2018, $417 million in 2019, $584 million in 2020, and peaked at $793 million in 2021 before standing at $784 million in 2022 and the current figure for 2023.
Fiji Airways mentions a reduction of its debt level by $100 million this year. The annual report highlights that the group refinanced $94.9 million of its debt, which included a $32 million ADB loan and $10.2 million in deferred lease payments to Dubai Aerospace Enterprise. This refinancing was made possible through a $90 million loan from BRED Bank, intended to lower interest costs and mitigate foreign exchange risks.
Despite the challenges posed by COVID-19, during which the airline recorded a comprehensive loss of over $578.8 million from 2020 to 2022, Fiji Airways expresses pride in its resilience and strategic capacity. The airline’s debt reached a concerning $793.9 million by the end of 2021, nearly double its pre-COVID levels. However, in 2023, it successfully repaid $100.4 million in loans and refinanced $94.9 million of its offshore debt using domestic financing.
In terms of capital investment, Fiji Airways allocated $109 million in 2023, prioritizing $49 million for the second phase of the Fiji Airways Aviation Academy, $34 million for aircraft maintenance, and the remainder for new equipment and systems to support its strategic initiatives.
Fiji Airways achieved a revenue of $1.8 billion in 2023, marking a 67 percent increase from 2022, along with total receipts of $1.9 billion, which is a 58 percent rise compared to the previous year. This performance represents the highest earnings in the airline’s 70-year history. The company emphasizes that these exceptional results not only reflect significant growth in 2023 but also exceed pre-COVID performance, establishing a new standard for future efforts.