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Fiji Time: 4:07 AM on Friday 25 April

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Air pacific group loss

Tuesday, October 27, 2009

THE Air Pacific Group has reported a pre-tax loss of $14.3million for the year to Mach despite carrying more than one million passengers the previous financial year.

Group chairman Nalin Patel said of that loss, $12.24m was incurred by the airline alone.

He said the financial year was extremely challenging for the group with the most significant cost issue being fuel.

He said the airline spent $297.72m in the financial year compared to $171.23m the previous year, an increase of $126.49m.

"While the first half of the financial year produced poor trading results, the final six plunged to deep losses," Mr Patel said.

He said the group, comprising of Richmond Limited - the joint owners of the Sofitel Fiji Resort and Spa, Fiji Airlines Ltd - trading as Pacific Sun - and Air Pacific Ltd, had a negative swing of $52.45m compared to the profit of $38.15m for 2007 to 2008.

Group revenue increased by 16 per cent, from $558.4m to $648.47m - a growth of $90m. But the group's costs increased by $120m, from $535.2m to $655.14m.

Mr Patel said the $12.24m loss was incurred by Air Pacific alone.