Fiji Airways to Face a Challenging 2018

Fiji Airways has been operating since 1951. The airline has been thriving, and, although the country is one of the smallest in the world, it has been fairly successful. On the list of the top 20 best carriers in the oceanic islands, Fiji Airways is among the top 10. Although the airline only has a fleet of 9 aircraft, it has a very modern fleet. Thanks to the location of Fiji in the middle of the ocean, short flights to most popular cities is very hard to achieve, as there are not many in the range of a small turboprop. The airline is booming, but rising fuel costs and increasing competition is significantly hurting the carriers' operations and future plans.

Fiji Airways has enjoyed record profits for the last 4 years, but 2018 is looking even more difficult. For any airline, posting a profit, whether it is a record or not, is one of the best achievements. Airlines in the Oceanic region, specifically the islands, have operated under difficult situations. The airlines compete for a small market, making it very difficult to post a profit on that route. Fiji Airways on the other hand, has new, efficient planes and friendly ties with Qantas, the flag carrier of Australia, and a major threat to other Oceanic airlines. Qantas owns a 46% stake in the carrier, however that is not the majority stake. The Fijian government owns the controling stake with 51%. Other governments including the Kiribati and Tongan governments in addition to Air New Zealand own the remaining 3%. For many airlines, 2018 is looking difficult.

Although air travel growth is increasing year on year, so do the fuel prices. Andre Viljoen, Fiji Airways' CEO says that fuel prices will be the airlines' major threat this year. He also said that 'fuel prices will continue to be a challenge for all airlines and we will not get complacent with the fiscal discipline required to meet our financial targets'.

2017 marked an amazing achievement for the airline. The airline and its subsidiaries posted a pre tax profit of 38.2 million euros, a record for the carrier. This meant, that revenue increased by 13.4% compared to the previous year. Passenger numbers also showed record numbers, with 1.6 million passengers travelling with Fiji Airways and its subsidiaries, a 14.3% increase compared to 2016. Viljoen said in a statement that he 'couldn’t be more proud of the way the team surpassed all key metrics for revenue, passenger and network growth, efficiently navigating through a challenging operating period in which cost control was crucial'. He also said that there was increased competition on some routes. Fuel prices rose and are currently at around 56 euro a barrel, compared to 36 euro in mid 2017. In other news, Fiji Airways is preparing to take delivery of its first Boeing 737MAX 8 in November 2018. Fiji Airways will become the first operator of the type in Oceania, making it more intriguing for aviation lovers to fly on the Fijian carrier. The aircraft type is set to operate the following routes. Nadi to: New Zealand Hawaii Kiribati Samoa The Solomon Islands Vanuatu Tonga All the above flights are currently flown by a handful of Boeing 737 Next Generation (NG) aircraft that the airline has. Fiji Airways is set to replace some of its Boeing 737NG planes with newer, more efficient Boeing 737 MAXs. Currently, Fiji Airways operate 4 Boeing 737-800s and 1 Boeing 737-700, which form the baseline of the airlines' fleet. In addition to flying Boeing 737 aircraft, the carrier also operates Airbus A330 aircraft which form the backbone of the airlines' long/medium haul fleet.

Although Fiji is not the most popular city, Fiji Airways is growing, and currently has aircraft orders that will almost double its existing fleet. The Airbus A330 has helped Fiji Airways become a name known all over Asia, America and Oceania. The airline has currently got 2 outstanding orders for the Airbus A330; The airbus A330-200 and -300 are both on order. Although the airline has not scheduled any retirements for its Airbus fleet, the carrier has said that they are 'embarking on an evaluation campaign to select a widebody jet aircraft type to augment and/or replace the existing Airbus A330 fleet.'

The Boeing 737 MAXs that the airline has on order are said to help Fiji Airways' profitability and help it to remain in positive figures throughout the years that follow. Although 2018 looks very challenging for the Fijian carrier, the airline is expanding and is likely to become one of the best Oceanic carriers ever to operate thanks to its new and efficient fleet which are also very comfortable to fly in.