Fiji based Air Pacific has reported substantially smaller losses than last year though its operations remain in the red.
The airline, which is 46 per cent owned by Qantas, today reported operating losses of F$3.6 million ($1.92 million) for the financial ending in March, down from losses of F$91.8 million for the previous year. Air Pacific Group, which includes subsidiary Pacific Sun and hotel holdings, reported losses of F$4.3 million, down from F$78.5 million.
The airline still managed a net profit of F$24.7 million ($13.2 million) thanks to savings realised through the cancellation of delayed aircraft orders. Air Pacific last year reported a net loss of F$65.3 million.
The airline said the improved results were due to restructuring launched in the wake of last year’s record worst performance. The restructure, which brought in new CEO David Pflieger, included downsizing Pacific Sun, a regional carrier, revamping Air Pacific’s reservations system, improving check-in times and increasing focus on China and Hong Kong. Even as soaring fuel prices pushed costs up by F$39 million, the airline said it was able to generate F$40 million more revenue than last year and cut non-fuel costs by F$13 million.
In a statement, Pflieger said the airline would launch twice daily service to Sydney in January 2012 as part of its efforts to turn a profit. It has also signed a new code sharing agreement with American Airlines and plans to take delivery of another Boeing 737-800 this year and three Airbus A330-200s in 2013.
Qantas has signalled its intention to sell its share of the airline.