Fiji Airways says the cost of operating domestic routes, fuel expenses, weather conditions and airport restrictions are the challenges affecting local airfares.
This was highlighted by Fiji Airways Chief Executive Officer Paul Scurrah and Board Chairman Nalin Patel during submissions on the airline’s 2024 Annual Report before the Parliamentary Standing Committee on Social Affairs when Committee member Ketan Lal questioned why domestic airfares remain high.
Patel says the airline for the year ended 2024 recorded a loss after income tax of $25 million due to unrealised foreign exchange losses of about $84 million.
He stressed that fuel remains one of the airline’s biggest cost items.
The CEO says Fijians have every right to question the cost of air travel.
Scurrah says similar concerns are raised in Australia and New Zealand, particularly regarding regional flights.
Scurrah says Fiji Airways is committed to keeping fares as affordable as possible for Fijians while ensuring the airline remains financially sustainable and can continue investing in aircraft.
He says finding the right balance is not always easy, particularly as inflation continues to rise faster than the airline can recover costs through revenue.
Scurrah says Fiji Link operates on small margins, even with subsidies, and rising fuel costs are placing additional pressure on the airline.
He says Fiji Airways is looking at adding $250 to every ticket across its network to recover fuel costs.
Scurrah also acknowledged that supply and demand influence ticket prices, with fares sometimes varying significantly between travel dates.
He says the airline uses dynamic pricing to balance demand and ensure it can generate enough revenue to maintain operations and reinvest in its future.
