Fiji Airways is weighing a fuel levy or ticket price rises as jet fuel costs spike amid the war in the Middle East, the national carrier’s chief executive said, in the latest sign that global conflict is beginning to bite into Fiji’s travel and tourism sector.
Chief Executive Paul Scurrah told reporters the airline is monitoring daily movements in fuel markets and may seek to recover higher jet fuel bills — which he said account for roughly 30 to 40 percent of Fiji Airways’ operating costs — through surcharges or fare adjustments. “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 passengers could see higher costs if oil markets remain volatile.
Scurrah stressed the airline is not planning rushed decisions that would harm Fiji’s tourism industry. He said Fiji Airways is maintaining fuel reserves, staying in constant contact with suppliers and has “no intention of making short-term manpower cuts.” The carrier also intends to hold seat capacity to key destinations, he added: “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. And we will do everything we can to make sure that we hold our capacity at its current level into the future.”
The warnings come as tourism operators express concern about rising operational costs linked to the conflict. Eroni Puamau, general manager of Rosie Holidays, said the situation is “a big concern” and that higher fuel costs are affecting transport logistics and overall operating expenses for tour companies that depend on reliable and affordable air services. Tourism accounts for a large share of Fiji’s economy, and higher travel costs or reduced services could have knock-on effects for hotels, tour operators and related businesses.
The latest statements update earlier domestic warnings about the economic fallout from the Middle East crisis. Fiji’s Competition and Consumer Commission has previously highlighted Fiji’s vulnerability because it imports all of its fuel, and noted that changes in global oil prices typically flow through to local pump prices within about a month. That vulnerability increases the urgency for airlines and other import-dependent sectors to plan for sustained price swings.
Scurrah said any decision to impose a fuel levy or increase fares will depend on how global fuel prices move in the coming weeks, signalling a cautious approach that balances protecting the carrier’s financial position with the island nation’s broader tourism recovery. He declined to put a timeline on any changes but emphasised the airline’s priority is to keep international connections reliable.
For now, Fiji Airways appears focused on risk management and contingency planning rather than immediate cost-cutting measures. But if volatility persists and jet fuel remains elevated, travellers and tourism businesses should prepare for possible higher airfares or surcharges as the airline seeks to offset the rising share of fuel in its operating budget.
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