Fiji Airways Group recently reported its unaudited interim results for the first half of 2014, announcing a massive increase in operating profits compared to the corresponding period last year.
The group, legally known as Air Pacific Limited, comprises Fiji Airways, its subsidiary Fiji Link, and a 38.75 percent stake in the Sofitel Fiji Resort & Spa on Denarau Island.
It recorded an underlying operating profit of $17.2 million (FJD) from January 1, 2014 to June 30, 2014. The amount is the total adjusted operating profit excluding release of aged management accruals and one-off items like the introduction cost of the first A330 in 2013 and the hard landing cost in 2014. In the corresponding period of 2013, the Group’s underlying operating profit was $0.5 million (FJD).
Stefan Pichler, managing director and CEO attributed the strong performance to higher load factors, more efficient cost management, streamlined management structures and a highly motivated staff.
The New Zealand, United States and South Pacific markets performed strongly in this period. Australia and Hong Kong performed weaker than expected due to a weaker exchange rate for the Australian dollar and lower than budgeted load factors for Hong Kong. The domestic network reported a small loss. This is the first time the Airline Group has released interim results for half its financial year, the best ever in the airline’s history.
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