28 Oct 2009

Fiji's Air Pacific records a major profit loss

11:49 am on 28 October 2009

Air Pacific has recorded a nearly 6.5 million US dollar pre-tax loss for 2008-09 and predicted the red ink would deepen this financial year.

The Australian reports the loss, down from a 2 million US dollar profit the previous year, came despite a record number of passengers and an 42 million dollar rise in revenue.

But the 15 per cent revenue improvement was overshadowed by a 21 per cent increase in expenses as financing costs swung 3.7 million into the red and fuel costs, including hedging losses, increased nearly 70 mullion US.

The result comes as Qantas is talking to the Fiji government about selling its stake in Air Pacific and the Fiji carrier faces increased competition from Jetstar and Virgin Blue.