Fiji Airways (FJ, Nadi) has terminated its memorandum of understanding with the Fiji Hotel and Tourism Association (FHTA) as part of a review of costs and commercial partnerships, shifting instead to direct agreements with individual hotels and resorts, according to the Fiji Sun newspaper.
The agreement, signed in 2023, gave FHTA members access to discounted airfares for overseas trade events and roadshows. The association represents 120 active members.
Fiji Airways' executive manager for industry, international and government affairs and corporate communications, Kameli Batiweti, said the decision formed part of the airline's cost-management efforts amid fuel-price volatility, inflation, and rising operating expenses. Direct agreements would allow the carrier to tailor arrangements to individual tourism businesses.
Neither party disclosed when the agreement ended or the financial effect of its termination. Fiji Airways said it would continue supporting tourism, trade, and international connectivity.
The FHTA earlier disputed the government's planned 5% tourism services tax, which the latter says will help fund the airline. The association opposed the levy and rejected government claims that the tourism industry supported it, even as the Fiji Tourism Action Group separately endorsed the measure.
As previously reported by ch-aviation, Fiji Airways recorded FJD150 million Fijian dollars (USD67.2 million) in additional fuel costs during the second quarter of 2026 compared with the same period in 2025. It has introduced cost reductions and deferred non-urgent capital expenditure, while the government and airline are reviewing routes, frequencies, and the carrier's investment in a local resort.
