Fiji Airways is expected to record another financial loss in 2026 as the airline faces nearly $300 million in additional fuel costs due to the volatility in fuel prices compared to last year.
CEO and Managing Director Paul Scurrah revealed this during fijivillage Straight Talk with Vijay Narayan, saying the airline continues to face significant financial challenges, with fuel prices having more than doubled compared to 2025.
Scurrah says although Fiji Airways has not finalised its financial results for 2026, he would not be surprised if the airline records another loss.
He says rising fuel prices are affecting airlines around the world, forcing Fiji Airways to review its spending and make difficult decisions to remain financially sustainable.
Scurrah says the airline also continues to carry significant debt and accumulated losses from the COVID-19 pandemic, making the current fuel crisis even more challenging.
He says Fiji Airways could have cut flights and grounded aircraft to reduce its losses, but such a decision would have had serious consequences for Fiji's tourism industry and the wider economy.
Scurrah says approximately 70 percent of visitors to Fiji travel on Fiji Airways, and reducing flights would affect businesses and jobs that depend on tourism.
He says this is why the airline approached the Government for financial support to maintain its flight operations.
Scurrah explains that the Government's $200 million loan guarantee is not a direct cash payment to Fiji Airways, but provides security for borrowing from financial institutions.
He also reveals that the new 5 percent tourism tax is expected to generate approximately $48 million for the airline this year.
Scurrah says the revenue will help offset some of the additional fuel costs, although Fiji Airways will still have to absorb most of the increase.
He says the airline has developed a five-year plan to return to sustainable profitability and is reviewing its operating costs, investments and business structure.
Scurrah adds that Fiji Airways is also strengthening its fuel hedging programme to better manage future fuel price fluctuations.
Despite the financial challenges, he says the airline remains committed to maintaining flights and supporting Fiji's tourism industry.
Scurrah stresses that the decisions being made now are aimed at ensuring Fiji Airways remains financially strong and sustainable in the years ahead.
