Fiji Airways is weighing a fuel levy or fare increases as jet fuel prices spike amid the war in the Middle East, the national carrier’s chief executive has said, in the latest sign the conflict’s fallout is squeezing Pacific travel businesses. Paul Scurrah told staff and industry partners the airline is monitoring price movements closely and will seek to recover rising fuel costs that now make up between 30 and 40 percent of its operating budget.
“Our fuel prices are subject to increases. So we do have to monitor that every day to make sure that we are recovering as much of that increase as we can through our fares,” Scurrah said, signalling that adjustments to ticket prices or the introduction of a separate fuel levy are options under consideration. He stressed the airline would avoid “haste actions” that could harm the broader tourism industry and said any final decision would hinge on how global fuel markets move over the coming weeks.
Scurrah also made clear the carrier does not intend to cut staff in the short term. Fiji Airways is maintaining regular contact with fuel suppliers to shore up reserves and is focused on holding current seat capacity. “Fiji Airways’ contribution to the Fiji tourism industry is a responsibility that we take extremely seriously. We don’t see the need to pull back or to reduce the number of seats we’ve got coming in and out of Fiji now,” he said.
Tour operators say a spike in jet fuel would hit more than airfares. Eroni Puamau, general manager of Rosie Holidays, described the situation as “a big concern” that affects transport logistics and overall operating costs. Tour operators are also watching geopolitical developments closely after recent US‑Israeli strikes on Iran raised the prospect of a sustained period of higher crude and jet fuel prices, which would ripple through aviation and ground transport expenses for Fiji’s tourism sector.
The carrier’s warning comes after earlier disruptions this year when Fiji Airways imposed limits on flights to Funafuti and Vavaʻu because of fuel supply constraints at destination airports. That episode, announced in January, involved operational weight and balance adjustments that reduced capacity on affected routes and underscored the sector’s vulnerability to fuel availability and cost shocks.
Fiji Airways’ position mirrors a broader trend across the aviation industry, where fuel accounts for the single largest slice of operating costs and sudden price swings force airlines to consider levies, surcharges or capacity cuts. Scurrah framed the airline’s response as calibrated: prioritise reliable international connections and protect employment while using pricing tools to recover variable costs if necessary.
For now, passengers and tourism businesses are being asked to watch for announcements. Any move to introduce a fuel levy or lift fares will be communicated only after the airline assesses short-term market movements and supplier guarantees, Scurrah said, as the carrier tries to balance financial sustainability with support for Fiji’s recovering tourism industry.
Leave a comment