Fiji Airways Group Announces Record Profit Of F$70.2M
Revenue and passenger numbers up for national carrier
Tuesday, 12 April 2016: The Fiji Airways Group has had another record year of growth, announcing profits before tax of $70.2m for the fiscal year ended 31st December 2015.
The Group - comprising Fiji Airways, Fiji’s national airline, its subsidiaries Fiji Link & Pacific Call Comm Ltd, and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island - reports that profits are up by 15.5%, passenger numbers are up by 7.4% and revenue has increased by 6.3%.
- Group revenue was $815.3m compared to $767.4m for the year ended 31st December 2014.
- Group profit before tax was $70.2m compared to a $60.8m for the year ended 31st December 2014.
- Group passenger numbers of 1.3m compared to 1.2m for the year ended 31st December 2014.
Mr. Andre Viljoen, Fiji Airways Managing Director & CEO said: “Our team surpassed previous benchmarks for profits and growth, with passenger numbers (+7.4%), load factor (+0.1 pts) and RASK (+1.3%) all improving significantly, coupled with a well-controlled cost base (CASK -0.4%). These results allow us to continue our commitments to our people, our shareholders and stakeholders, who will, of course, share in our success.”
Based on the PwC audited financial statements for 2015, the Group announces the following profit-share and management bonus arrangements:
- All eligible non-management staff of Fiji Airways and Fiji Link will receive a profit-share payout of $3,300 each, 10% higher than the 2014 level of $3,000, subject to tax and superannuation deductions as required.
- All eligible Fiji Airways and Fiji Link managers will receive a management bonus of not less than $7,700 each, 10% higher than 2014, subject to tax and superannuation deductions as required.
In addition, non-management staff for both airlines already stand to earn quarterly KPI-related bonuses of up to $1,200 per year, on achievement of key business objectives.
Mr. Viljoen added: “Our results are also sustainable, provided that market demand recovers from recent national disasters and is not merely driven from lower than anticipated fuel prices. We realise that the upside from lower fuel prices has been largely off-set by foreign currency exposures on aircraft US dollar-based loans and Australian dollar revenue streams, given the strengthening / weakening of the USD and AUD respectively. Aviation remains a volatile industry. The fuel price relief will not last, so we intend to maintain our cost-management discipline and focus. Again, our team delivers year after year, not just increasing revenue but managing costs and we are grateful for their commitment and hard work
All international markets performed strongly for the Group, with the core markets of Australia and New Zealand delivering reasonable returns, coupled with strong growth from Hong Kong and Los Angeles. Fiji Link’s regional and domestic services also contributed positively to the Group performance.
Mr. Viljoen stated: “2016 presents yet another year of opportunities and challenges. Three exciting new destinations are being added to our network, with our inaugural flight to Singapore commencing last week and San Francisco and Vava’u (Tonga) all coming online by June. This gives our already impressive network even more of a boost. By the end of 2016, we will have 50 destinations in 13 countries around the world, which includes codeshare destinations; all pretty phenomenal for a small airline like ours. There will undoubtedly be challenges, as Tropical Cyclone Winston has an impact on our forward bookings. But a number of initiatives are underway with the Tourism Action Group (TAG) to address these challenges.”
In 2016, Fiji Airways will rigorously pursue a 4-star Skytrax service rating and embark on service training across the company. Every single team member will undergo a specially created Up! Your Service programme devised by world-renowned service expert Ron Kaufman and his organisation.
Mr. Rajesh Punja, Fiji Airways’ Chairman said: “We are, of course, delighted that all key business and financial metrics outperformed the previous financial year. Our financial results will ensure that Fiji Airways continues to do its part for Fiji. Our strong financial position means we are able to reward staff and assist the country whenever possible. We stand in solidarity with our fellow Fijians who have suffered due to Tropical Cyclone Winston. We have assisted with the Government’s relief and rehabilitation efforts and will continue to do more in the coming months.”
The new record result was warmly welcomed on behalf of the government – the airline’s majority shareolder – by the Attorney General and Minister for Civil Aviation, Honourable Aiyaz Sayed-Khaiyum.
“I am sure that every Fijian joins me in paying tribute to the management and staff of Fiji Airways for a result that sets a benchmark for every Fijian company. In a week in which our Rugby Sevens team won the Hong Kong Sevens bearing the Fiji Airways logo on their jerseys, we salute another group of champions at our national airline. It is through your dedication and hard work that this result has been made possible. And you have given us all a reason to be extremely proud at a time when so many Fijians face the challenge of recovering from the devastating impact of Cyclone Winston. I am especially pleased to see the 10 per cent increase in the profit share payout for Fiji Airways employees. Your hard work is paying off and I urge you all to take advantage of the new service training that is being planned for the coming year. Because the more you perform, the better the airline performs and the more profits we can generate to share among staff and reinvest in the airline’s future”.
Highlights for Fiji Airways Performance for 2015:
- Profit Before Tax: $70.2m
- Increase in RASK (Unit Revenue) 1.3%
- Increase in CASK (Unit Cost) (0.4%) – in line with productivity growth
- Increase in passengers flown: 7.4%
- Increase in load factor: 0.1%
- Increase in trips: 6.8%
- New routes launched: Nadi-Wellington, Nuku’alofa-Vava’u
- Increased frequencies: Australia, New Zealand, Hong Kong, Tonga, Samoa, Vanuatu, Solomon Islands