Fiji Airways soars despite cyclone devastation.

A devastating cyclone and increased competition didn’t stop Fiji Airways Group from boosting passenger numbers and recording a record pre-tax profit of $F84.5 ($US41m) million in 2016.

The South Pacific Airline group —  which includes Fiji Airways, regional subsidiary Fiji Link and a stake in the Sofitel Fiji resort — saw profit before tax come in 20.5 percent higher than 2015. Revenue rose from $F815.3m to $F825.3m. 

Passenger numbers rose 4.9 per cent to 1.4 million as the airline launched new routes from Fijian city Nadi to Singapore, Vava’u (Tonga) and San Francisco. It also increased flights to Hong Kong and boosted a range of seasonal services to a range of destinations.

“Last year was full of milestones achieved, culminating in the largest profit the airline has ever recorded,’’ chief executive Andre Viljoen said. “To achieve these results is nothing short of outstanding - in a year when we had the most devastating cyclone in our nation’s history slow down tourism and the launch of three new international routes.’’

The airline said yields were under pressure throughout the year from increased capacity from competitors and discounted airfares.  Fiji Airways had led actions to re-invigorate travel demand after Cyclone Winston by discounting airfares, which cost it more than $F40m in lost revenue.

However, it noted these actions by Fiji Airways were largely responsible for Fiji’s tourism growth of 5 per cent in 2016.

Among these celebrating the result are Fiji Airways staff who will each receive a profit share payout of $F4000, up 20 per cent on 2015. This is in addition to bonuses of up to $F1200 per year for achieving key objectives. Managers will get a bonus of $F9000, also up 20 per cent.

Officials said achievements during the year included a package deal for five new Boeing 737 MAX 8 aircraft arriving in 2018-19, operations using the new A330-300 aircraft on long-haul routes, a major onboard refresh and the design of new world class lounge due to open in Nadi in 2017.

The airline had also hired an additional 27 pilots and 82 cabin crew to cater for increased operations and launched a state-of-the-art aviation academy in Nadi.

Viljoen said 2017 would be another big year in which the airline had set bigger, more ambitious goals.

“We are increasing our focus on Singapore with a dedicated new sales team in place and a codeshare partnership with Jet Airways to target more Indian travellers,’’ he said.

“We will fly directly between Nadi and Adelaide from June, further extending Fiji’s reach into its biggest tourism source market. 

“San Francisco will be extended to a year-round service, providing increased tourism growth opportunities from mainland USA.’’