Fiji Airways, the rebranded Fiji Flag Carrier (earlier known as Air Pacific) recorded profit before income tax (BIT) of $F 18 million for the financial year ended March 31, 2013.
This compared well with the previous year’s profit (BIT) of F$ 16.5 million. Excluding prior period adjustments, the airline delivered an underlying profit (BIT) of F$9.5 million.
The results showed a remarkable turnaround for the airline, whose predecessor (Air Pacific) recorded its biggest loss in history three years ago.
Operating profits
Chairman Nalin Patel said that Fiji Airways and its Consolidated Group (Air Pacific Group) earned operating profits during the past financial year.
Air Pacific Group reported F$22.4 million profit (BIT), compared to F$14.2 million recorded during the financial year 2011-2012.
Excluding prior period adjustments, the Group recorded F$13.4 million profit (BIT).
Air Pacific Group comprises Fiji Airways, its wholly owned subsidiary Pacific Sun, and 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island.
On a net basis, Fiji Airways reported after-tax profit of F$14.1 million (F$ 11.4 million last year), while the Air Pacific Group reported after tax profit of F$17.8 million (F$10.7 million).
Mr Patel said that prior to fleet expansion, Fiji Airways increased its annual revenue by F$13.8 million, compared to the previous year and by F$104.3 million, compared to financial year 2010-2011.
The airline also carried 14,167 more passengers compared to 2011-2012, and 99,649 more passengers compared to 2010-2011.
Untoward events
Mr Patel attributed the underlying operating profits this year to floods in April 2012, Cyclone Evan in December 2012, expenditures related to rebranding the airline, and costs related to preparation for induction of new fleet of Airbus A330.
“Given that we initially expected to make a loss during this transition year, wherein we are exiting our older B747s and inducting our first-ever owned A330 wide-body aircraft, I am pleased with our results for 2012-2013.
“These results handily beat our business plan, and I continue to be thrilled with the successful turnaround of Fiji’s national airline. Credit for this must be given to our dedicated and hard-working employees,” he said.
Mr Patel said that Fiji Airways will focus on inducting new A330 aircraft and expediting efficiencies in fleet and schedule.
