Fiji Airways has announced its 2018 profits and said that the airline will purchase two new Airbus A350 XWB aircraft as part of its widebody aircraft expansion plans.
The new aircraft will service popular routes between the U.S. and Australia from Fiji.
“We are extremely pleased with this selection and proud of the confirmed arrangements with Dubai Aerospace Enterprise (DAE) Capital as the lessor, and Rolls-Royce as the engine supplier,” said Andre Viljoen, Fiji Airways managing director and CEO. “Our teams are currently customizing the aircraft to our specifications, including our world-renowned livery and designs which proudly represent the people of Fiji.”
It is not surprising that Fiji Airways would make the decision to purchase new aircraft now. The airline recently released its 2018 revenue numbers, which show that the airline crossed the 1 billion Fijian dollar mark with a profit of $55 million.
Group revenue also increased by 10 percent as the airline carried more than 1.7 million passengers last year, compared to 1.6 million the previous year.
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Fiji Airways can credit additional aircraft and a new route to its boost in profits and increased passenger numbers. The airline added three brand new Twin Otter aircraft and a Boeing 737 MAX 8 to its fleet and airlines/fiji-airways-launches-direct-nadi-narita-flights.html” target=”_self” rel=”nofollow noopener noreferrer”>added a new route between Tokyo, Narita, and Nadi, Fiji.
The only major downside that Fiji Airways faced and continues to deal with is the increase in fuel costs.
“2018 was characterized by significant highs and lows,” said Viljoen. “We grew revenue by 10 percent, crossing F$1 billion in total revenue and carried 7 percent more passengers, but this was offset by increased costs.
“Fuel price increases alone accounted for F$31.5 million being taken off our targeted bottom line, while unfavorable foreign exchange variations added another negative impact of $8.2 million,” he added. “Our network and fleet size grew, which means our manpower requirements grew as well, contributing to increased cost. Despite these and other industry-wide challenges, our team responded by diligently managing cost where possible and continuing with our infrastructure and fleet investment strategy.”
