[Photo: FILE]
Fiji Airways recorded a $25 million loss in 2024 despite generating a record $1.847 billion in revenue, with unrealized foreign exchange losses of about $84 million significantly affecting its financial results.
Presenting the airline’s 2024 Annual Report to the Standing Committee on Social Affairs, Fiji Airways Board Chair Nalin Patel says the airline would have recorded an estimated $42 million profit without the foreign exchange losses.
Patel says operating expenditure totaled about $1.5 billion – with fuel alone costing nearly $500 million – while earnings before interest, taxes, depreciation, amortization, and rent stood at approximately $325 million.
“We had depreciation figures that gave us operating profit before finance cost and taxation of approximately $95 million. After the finance cost, the operating profit before other significant item was $23.6 million.”
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Patel explains that foreign liabilities must be converted into Fiji dollars at the end of the reporting period. Although this does not involve an immediate cash payout, it still impacts the reported financial results.
He also highlighted the airline’s exposure to US-dollar expenses, creating a currency mismatch with its revenue sources.
Passenger services generated around $1.7 billion in revenue, while cargo revenue increased to $112 million and other sources contributed $26 million.
Patel adds that these figures underscore the ongoing pressure to manage high operating costs and currency risks despite strong revenue performance.