Fiji Airways reports record first half profits

Fiji Airways reports record first half profits
By admin


Fiji Airways Group has reported a significant increase in operating profits in its unaudited interim results for the first half of 2014.

The group recorded an operating profit of $17.2 million for the period spanning January 1 to June 30, which it revealed as the best half year operating result in the national carrier’s history.

The group, legally known as Air Pacific Limited, comprises of Fiji Airways, its subsidiary Fiji Link and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island.

The amount is the total adjusted operating profit excluding the release of aged management accruals and one-off items such as the introduction cost of the first A330 in 2013 and the hard landing cost in 2014.

Managing director and chief executive Stefan Pichler attributed the strong performance to higher load factors, more efficient cost management, streamlined management structures and motivated staff.

“The key driver of this underlying profitability was the 10% higher load factor across the whole network. We flew 4% more passengers and produced 5% more sectors, but in a much more efficient way,” he said.

Throughout the period, the New Zealand, US and South Pacific markets were the strongest, whilst Australia and Hong Kong performed weaker than expected due to a lower exchange rate for the Australian dollar and lower than budgeted load factors for Hong Kong.

Pichler listed a number of areas that the group will focus on to continue this profitability, including strategic cost and revenue control, competitive prices and strong customer experience.

“We believe that reporting provisional results for the first half of the financial year is an important step for Fiji Airways,” he said.

“We are committed to improving transparency and credibility, not only at home in Fiji but also for our international financial partners.”

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