Fiji Airways' has blamed higher fuel costs after its profits declined 42% in its full year 2018 financial results.
The group's profit before tax for the year ending December 31, 2018 was F$55.3 million ($25.8 million) compared to F$95.8 million for the previous financial year.
The airline did post a 10% rise in revenue to F$1.02 billion for the 12 months of 2018.
Last year, Fiji Airways added three brand new Twin Otter aircraft and a Boeing 737 MAX 8 to its fleet. It also opened a new route on its network, flying three times a week between Narita, Tokyo and Nadi, Fiji.
Andre Viljoen, Fiji Airways managing director and CEO, said that last year was characterised by "significant highs and lows"
He said: "We grew revenue by 10%, crossing F$1 billion in total revenue and carried 7% more passengers, but this was offset by increased costs.
“Fuel price increases alone accounted for F$31.5 million being taken off our targeted bottom line, while unfavourable foreign exchange variations added another negative impact of $8.2 million."
Viljoen added: “The outlook for 2019 remains challenging. We are set to add two brand new widebody aircraft to our fleet, increasing seat capacity which in turn means more visitors, ultimately benefiting the Fijian economy. Fuel price is expected to negatively impact us in 2019 by F$40 million, hence the need to invest in modern, fuel efficient aircraft that aligns with our commitment to providing a world-class travel experience.”