Fiji Airways (FJ, Nadi) has secured parliamentary approval for a FJD200 million Fijian dollar (USD90.5 million) government guarantee for additional borrowing as the carrier faces liquidity pressure and elevated fuel costs, according to local media.
On August 17, 2026, the parliament unanimously approved the guarantee, which covers further borrowing from August 1, 2026, to June 30, 2029. Fiji Airways is exempt from paying a government guarantee fee.
Finance minister Esrom Immanuel said around FJD123 million (USD55.5 million) would replace cash currently tied up as collateral against standby letters of credit, while the remaining FJD77 million (USD35 million) would support revolving working capital facilities.
Immanuel said Fiji Airways also has a five-year plan targeting a return to sustainable profitability in 2027 through cost reductions, route reviews, a greater focus on profitable services, and management restructuring. The carrier had already introduced a series of cost-cutting measures after reporting FJD150 million (USD68 million) in additional fuel costs in the second quarter of 2026 compared with the same period last year.
As previously reported by ch-aviation, the government announced the planned guarantee in its June 2026 budget alongside an extension of Fiji Airways' tax-loss carry-forward period and a temporary 5% tourism services tax, expected to raise around FJD70 million (USD31.7 million) for the airline.
