JetBlue’s Cost-Cutting Measures vs. Fiji Airways’ Resurgence: Navigating Airline Profitability Post-Pandemic

While air travel is currently experiencing record highs post-pandemic, not all airlines have seen significant profits. Following the blocking of its plan to acquire Spirit Airlines for $3.6 billion by a federal judge earlier this year, investment analysts speculated about possible bankruptcy for the budget airline. However, JetBlue Airways, despite previous unprofitable quarters, is in better financial standing. In early 2024, JetBlue decided to withdraw from unsuccessful markets such as Kansas City, Newburgh, Quito, and Lima. Related articles examine the effect of JetBlue’s cost-cutting measures on certain routes. On the other hand, Fiji Airways, despite serving only approximately one million individuals, has recently recorded a significant surge in earnings. Its 2023 net income rose by almost 67% compared to the previous year, with revenues of $466 million USD and an operating profit of $163 million USD. The bulk of Fiji Airways’ earnings comes from significant locations like Australia and New Zealand, although it also operates flights to San Francisco and Los Angeles, with a journey duration of roughly 11 hours to Nadi’s capital. According to Akuila Batiwetiwe, the Chief Marketing and Sales Officer of Fiji Airways, its success would not have been achievable without the aid of trade partners following the outbreak of COVID-19. “When we came out of COVID, we went to the trade and said that Fiji required assistance. They didn’t falter; everyone thrived, and we believe that we all prospered together,” he stated in an interview with local news source KarryOn. From 2020 to 2022, Fiji Airways suffered overall losses of $368.1 million USD. As a result, the promotional campaign to attract tourists to Fiji persisted even as borders reopened, frequently making it the initial foreign location sought by Australians and New Zealanders eager to travel. When announcing the results, Viljoen, the CEO of Fiji Airways, expressed pride in his staff’s resolve and dedication, stating that achieving such results in such a short period of time during such trying circumstances is evidence of the company’s and nation’s stubbornness and fortitude. This article is related to a veteran investment expert’s list of preferred investments for 2024.