SUVA, Aug. 17 (Xinhua) -- Fiji Airways is facing a surge in fuel costs amounting to 130 million Fijian dollars (some 59 million U.S. dollars), placing further strain on the airline's financial position.
Minister for Finance, Commerce and Business Development Esrom Immanuel said the increase was part of the most severe fuel price shock Fiji Airways has experienced in over 50 years.
The Fijian government approved an additional 200 million Fijian dollars (around 90 million U.S. dollars) guarantee on Monday to help the national carrier cope with rising fuel costs, Fiji Broadcasting Corporation reported.
However, the guarantee is not an immediate cash payment to Fiji Airways. It enables the airline to borrow funds backed by the government guarantee for three years, from Aug. 1, 2026, to June 30, 2029.
Deputy Prime Minister and Minister for Tourism and Civil Aviation Viliame Gavoka said Fiji Airways remains critical to the tourism sector because of its role in maintaining international and domestic connectivity.
According to the deputy prime minister, Fiji Airways has made difficult cost-cutting decisions, including reducing catering costs, instead of cutting flight capacity. ■