Fiji Airways’ Airbus A330 aircraft.
* $18m pre-tax profit despite big investments
*New aircraft, products and services key
* More passengers carried
By RACHNA LAL
Air Pacific Limited, which recently rebranded to Fiji Airways, has recorded another record-breaking year in terms of its revenue and passenger numbers.
Fiji Airways yesterday announced its financial results for the fiscal year ended March 31, 2013.
The national airline reported a profit before income tax of $18 million compared to a profit before income tax of $16.5 million for the previous financial year.
Excluding prior period adjustments, Fiji Airways delivered an underlying profit before income tax of $9.5 million.
Meanwhile, the Air Pacific Group reported a profit before income tax of $22.4 million, compared to a profit before income tax of $14.2 million for 2011/12.
Excluding prior period adjustments, Air Pacific Group delivered a profit before income tax of $13.4 million.
The group includes Fiji Airways, its wholly-owned subsidiary Pacific Sun and a 38.75 per cent stake in Sofitel Fiji Resort and Spa on Denarau Island in Nadi.
On a net basis, Fiji Airways reported an after tax profit of $14.1 million and Air Pacific Group reported an after tax profit of $17.8 million (versus after tax profits of $11.4 million and $10.7 million respectively for 2011/12).
In addition, and before any further increase in the size of its fleet, Fiji Airways increased annual revenue by $13.8 million compared to 2011/2012, and by $104.3 million compared to FY2010/2011.
The airline also carried 14,167 more passengers than in 2011/12, and 99,649 more passengers than in 2010/2011.
The results mark a second year of sustained operating profit, just three short years after the airline experienced the biggest loss in its history.
Decreased underlying
profit explained
Fiji Airways chairman, Nalin Patel, attributed the airline’s decrease in underlying operating profit this year to a number of events.
He said the floods in April 2012, Cyclone Evan in December 2012, expenditures related to rebranding the airline, and costs related to preparation for induction of its airline’s new fleet of Airbus A330 aircraft all affected this.
“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’m quite pleased with our results for 2012/13,” Mr Patel said.
“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.”
Focus now
Mr Patel said their focus now was on inducting the new Airbus A330s and expediting efficiencies in its fleet and schedule this year.
“We have consistently stated that our restructure and turnaround plan is an on-going process, and we are still not done yet,” he said.
“Our team knows there is a lot of hard work and commitment required to see the changes through to completion.
“Our plan is to build a platform to be sustainably profitable and to allow our staff, shareholders and the entire country to benefit from our success.”
“We remain ever mindful of the possible challenges posed by market uncertainty, a slowdown of major world economies, and the ever-present threat of further volatility in oil prices.
A national success
The Attorney-General and Minister for Civil Aviation, Aiyaz Sayed-Khaiyum, described Fiji Airways as a national success story.
“The dramatic turnaround of Fiji Airways is an accomplishment by a focused management team and dedicated workers all pulling in the same direction,” he said.
“We are very proud of our national airline and grateful for the vision, the steady leadership and hard work that put Fiji Airways solidly in the black and restored the Fiji Airways brand.
“And we are undergoing a seamless transition to a solid new leadership team that will continue this upward trend.”