DATA SPOTLIGHT: Fiji Airways

1 September, 2020

This year The Blue Swan Daily will feature some of the leading airlines, airports and country markets for air travel. Here, using the extensive profile insights available to CAPA - Centre for Aviation members to deliver a data snapshot, we look at Fiji Airways, which was already facing severe headwinds in 2019, impacted by competition and fuel costs, but which has left no stone unturned in its efforts to cut costs and adapt to the 'new normal' under the shadow of the Covid-19 pandemic.

Last year's pressures were mainly diven by minority shareholder Qantas launching its own Sydney-Nadi services from the end of Mar-2020 in direct competition with Fiji Airways' own flights. The competition arrived at the start of what was "an already sluggish off-season period," according to Fiji Airways CEO, Andre Viljoen and the resultant excess capacity "negatively impacted yields".

Still group revenue for the full calendar year reached FJD1.12 billion (USD524 million), +9% year-on-year rise and the second consecutive year the group crossed the FJD1 billion (USD467.9 million) revenue mark. Group profit before tax was up to FJD61.2 million (USD28.6 million) in 2019, compared to FJD55.3 million (USD25.9 million) in 2018. A stand out achievement also saw Fiji Airways become the launch airline for oneworld's connect partner platform.

It is a very different story in 2020 though and Mr Viljoen accepts that "things will not return to what it was pre-Covid and we will enter a new normal. It is preparing for the new operating environment by reducing costs by a further 20% in the same way it managed to save FJD40 million (USD18.9 million) in costs last year.

The airline's chairman Rajesh Punja says the carrier is "focused on ensuring that Fiji's national carrier not only survives this pandemic, but thrives in the post Covid-19 'new normal' environment" and acknowledges that "no stone has been left unturned in our efforts to cut costs and preserve and bolster cash reserves".

Even the largest and most profitable airlines have turned to financiers and governments for assistance and Fiji Airways has garnered support from its financiers who have provided new loans, its lessors who have offered aircraft rent payment deferrals, and the Fijian Government which has approved a sovereign guarantee scheme to support the financing actions.

ABOUT
Fiji Airways (formerly Air Pacific) is the national carrier of the Republic of Fiji and is majority-owned by Fiji's National Provident Fund. Based at Nadi International Airport, Fiji Airways provides a network of domestic and international services that spans the Pacific, North America, Asia, New Zealand and Australia. The carrier operates a mixed fleet of Boeing and Airbus aircraft. Announced on 03-Jun-2018, Fiji Airways is the foundation member of the oneworld connect programme.

GLOBAL RANKING (as at 31-Aug-2020)

NETWORK MAP (as at 31-Aug-2020)

DESTINATIONS (as at 31-Aug-2020)

ANNUAL PASSENGER TRAFFIC (2014 - 2019)

CAPACITY SNAPSHOT (versus same week last year)

ANNUAL CAPACITY (2012-2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)

WEEKLY DOMESTIC CAPACITY (2017 - 2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)

WEEKLY INTERNATIONAL CAPACITY (2017 - 2020*)(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)

CAPACITY SPLIT BETWEEN DOMESTIC AND INTERNATIONAL OPERATIONS (w/c 31-Aug-2020)

LARGEST NETWORK POINT (w/c 31-Aug-2020)

BUSIEST DOMESTIC ROUTES BY CAPACITY (w/c 31-Aug-2020)

LARGEST INTERNATIONAL MARKETS BY COUNTRY (w/c 31-Aug-2020)

BUSIEST INTERNATIONAL ROUTES BY CAPACITY (w/c 31-Aug-2020)

DEPARTING SYSTEM SEATS BY CLASS (w/c 31-Aug-2020)

AVERAGE FLIGHT LENGTH (w/c 31-Aug-2020)

FLEET SUMMARY (as at 31-Aug-2020)

AVERAGE FLEET AGE FOR IN-SERVICE AIRCRAFT (as at 31-Aug-2020)

MORE INSIGHT...

Fiji Airways' arrival in new oneworld alliance platform is a clear sign of the global grouping aiming to 'evolve to remain relevant'

Fiji Airways to expand in Los Angeles and Sydney and its new A350s will provide additional premium seating

It's all change in the South Pacific airline sector, but is the upcoming fleet and capacity growth sustainable?

Fiji tourism: growth to accelerate as Fiji Airways doubles in size

Fiji Airways Part 1: pursues fleet renewal and expansion with 737 MAX 8s and A350s or 787s