Airlines Qantas and Fiji Airways face financial pressure from fuel and currency costs

Major airlines Qantas and Fiji Airways have reported challenging financial results driven by high operating costs and currency fluctuations.

Qantas reported a decline in annual pre-tax underlying profit to $2.06 billion for the year ending June 30, citing elevated fuel costs linked to regional geopolitical tensions. To offset these costs, CEO Vanessa Hudson indicated the airline may increase fares and expand ancillary services. The company is also accelerating the retirement of its A380 fleet to 2028 to manage rising maintenance and fuel expenses, with plans to modernize its fleet starting in 2030. Jetstar, Qantas’s low-cost subsidiary, is focusing on increasing revenue through service unbundling and add-on fees.

Fiji Airways recorded a $25 million loss in 2024, despite reaching record revenues of $1.847 billion. Board Chair Nalin Patel attributed the loss to approximately $84 million in unrealized foreign exchange losses, noting that the airline would have seen an estimated $42 million profit without these currency impacts. The airline faces significant pressure from high operating expenditures, including nearly $500 million in fuel costs and a currency mismatch between US-dollar expenses and local revenue.